17 March 2022
Section 148A provides that the assessing officer has to give time of not less than 7 days but not more than 30 days to the assessee for furnishing his explanation. A notice has been issued on 17.03.2022 and served on the same day via email to the assessee asking to submit his explanation by 23.03.2022. Please let me know whether both days are to be included while computing 7 days ? Whether the time of 7 days is given in the given days. Thanks
18 March 2022
If it is considered as 7 days notice only if both days are to be included, i.e. the date of issue of notice and date of compliance given in the notice. Time extension is not likely to be allowed, as the AO has to issue notice u/s 148 by 31.03.2022.
Please refer to Section 12(1) of The Limitation Act, 1963 which reads as under:
12. Exclusion of time in legal proceedings.— (1) In computing the period of limitation for any suit, appeal or application, the day from which such period is to be reckoned, shall be excluded.
Therefore, it appears to me that in the given case, clear notice of 7 days is not given.
18 March 2022
My contention that the date of issue of notice should be excluded while computing limitation gets strength from s. 268 of the Income Tax Act, 1961 which reads as follows:
In computing the period of limitation prescribed for an appeal or an application under this Act, the day on which the order complained of was served .......
Kindly further advise whether the assessee should furnish the requisite information in response to notice or should first challenge the validity of the notice and respond only when a proper fresh notice is issued and served upon the assessee.
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