Delhi HC Quashes Section 148 Reassessment Notice Issued One Day Late, Says “Generated” Is Not “Issued”

The Delhi High Court, in a recent case, has quashed an income tax reassessment notice, noticing that the notice was not issued within a statutory time limit; instead, only generated online at the income tax portal. Set aside the notice as it reached the assessee late by one day.

The writ petition had been filed by Grid Solutions SAS in the Delhi High Court. In the present case, the notice under sections 148A and 148 was successfully generated and signed by the income tax department within the statutory deadline, on June 30, 2025; however, it was received by the assessee on July 01, 2025, which is beyond the legal deadline for initiating reassessment proceedings.

At the time of personal hearing, the income tax department admitted its mistake that the notice was successfully generated at 21:14:46 and digitally signed on June 30, 2025; however, it could not reach the assessee on time, due to technical glitches in the e-filing portal. The notice was uploaded on the portal at 00:48 am on July 01, 2025, and was also emailed to the assessee separately on July 01, 2025, at 09:18 am.

In the court, the authorised representative of the assessee argued that the notice is not acceptable as it is time-barred, according to the initial proceedings, its limitation had expired on June 30, 2025, only. Issuance of notice under sections 148A and 148 after this date makes it invalid.

To announce its final decision, the high court cited its earlier judgment titled Suman Jeet Agarwal v. ITO, where it was ruled that a notice is considered “issued” only when it is actually sent out. So, even if the notice was prepared earlier, if it was sent after the deadline, it will not count as issued on time.

The court further ruled that the revenue cannot merely rely on internal software delays to justify late issuance, as if the e-filing portal is not working properly, it is also attributable to the income tax department itself.

The high court noted that the reassessment notice for the assessment year 2019-20 was sent to the assessee only on July 01, 2025; hence held that the initiation of proceedings was barred by limitation and quashed the impugned notice dated June 30, 2025, issued under section 148. Meaning, the appeal has been allowed, and the final decision has been announced in favour of the assessee.