ITAT Quashes Reassessment as Section 148 Notice Emailed After Limitation Period:

The assessee is Shri Nitin Singla and has challenged the order of the CIT(A) dated 29 December 2025 for AY 2015-16. The primary contention was that the notice under Section 148 was time-barred since the last date for issuance of the notice was 31 March 2022, whereas the notice was sent to the assessee by email on 1 April 2022. The Department argued that the notice had been issued on 31 March 2022 and was merely received by the assessee on 1 April 2022. The Department relied upon the AO's report and the ITBA Portal screenshot to contend that the date of the notice, rather than the date of its receipt, was relevant for determining limitation.

The Tribunal, however, examined the email through which the notice was communicated and the ITBA Portal records. It found that the notice was actually sent by email on 1 April 2022 at 4:57 AM IST, although the notice itself had been signed on 31 March 2022. The Tribunal noted that the limitation for issuing the Section 148 notice for AY 2015-16 expired on 31 March 2022.

The Tribunal observed that the expression “to issue” means to send out or place the notice in the hands of the proper officer for service. Merely signing a notice within the limitation period does not amount to its issuance. Applying the same principle to electronic communication, the Tribunal held that a notice sent through email is issued when it is actually emailed and leaves the hands of the AO, rather than when it is merely prepared or digitally signed.

Since the Section 148 notice in the present case was sent on 1 April 2022, after expiry of the limitation period on 31 March 2022, the Tribunal held that the notice was time-barred and without jurisdiction. The Tribunal further held that proceedings arising from a notice issued without jurisdiction are vitiated. Accordingly, the assessment order passed pursuant to the invalid Section 148 notice was also held to be without jurisdiction and liable to be quashed.

Accordingly, the Tribunal allowed the assessee's appeal.