Case Law Details
Priyal Kauhshal Shah Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that as per provisions of section 10 General Clause Act, if last working day happens to be a holiday then the authorities concerned have been given power to make the necessary compliance on the next working day.
Facts- The assessee is an individual and engaged in the business of trading in shares, securities and derivatives transactions. As per the assessee, the notice u/s. 143(2) of the Act was digitally signed by the AO dated 30 September 2018 but the same was put into the process of service 1 October 2018. According to the assessee, the AO was duty-bound to serve the notice u/s. 143(2) of the Act before the stipulated time i.e. 30 September 2018 but the AO has failed to do so. Accordingly, the assessment framed u/s. 143(3) of the Act is invalid and not maintainable.
CIT (A) rejected the contention of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Undeniably, it was holiday dated 30 September 2018 being Sunday which was also the last working day for the service of notice under the provisions of section 143(2) of the Act for the year under consideration. In such situation the provision of section 10 General Clause Act provides if last working day happens to be a holiday then the authorities concerned have been given power to make the necessary compliance on the next working day. Thus apparently, it appears that the AO has made sufficient compliance by issuing the notice on the next working day being 1 October 2018 despite the fact that the office of the income tax was operational dated 30 September 2018 and the notice was digitally sign by the AO on 30 September 2018. To our understanding the Sunday being a holiday cannot be assumed or working day like any other day of the work.
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