HC Upholds Validity of Section 148 Notice Issued on Last Day of Limitation

Perin Exim LLP filed writ petitions challenging reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961, mainly disputing the validity of the notice dated 30.06.2025. The petitioner contended that the notice had not been properly served, pointing to postal tracking records indicating that the article was booked on 05.07.2025 and later returned with the remark “no such person in this address.”

The petitioner also relied on information obtained through an RTI response to argue that the notice had effectively been dispatched after the limitation period.

The Revenue submitted that due to technical issues on the portal, the notice was physically signed and dispatched on 30.06.2025 itself through the postal department. The matter was considered by the High Court.

Main Issue: Whether a reassessment notice under Section 148 is valid if it is issued and dispatched within limitation but not successfully served on the assessee.

HC Held: The Hon’ble High Court dismissed the writ petitions and upheld the validity of the notice. The Court observed that documentary evidence showed that the notice dated 30.06.2025 had been issued and dispatched on the same day to the petitioner’s recorded address, even though it was later returned by the postal department.

Relying on R.K. Upadhyaya v. Shanabhai P. Patel, the Court reiterated that the law distinguishes between “issue” and “service” of notice. For limitation under Section 149, the requirement is only that the notice be issued within the prescribed period; service is necessary before completion of reassessment but not for valid issuance. Since the notice was issued within limitation, the reassessment proceedings were held to be valid and the petitions were dismissed.

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