Limitation to Issue SCN under Sec 74(2)

[VENU K]

Dear Experts

I have received an SCN under Sec 74 for FY 2020-21. Now the question is, is this valid ?

For FY 2020-21

Annual return due date: 28.02.2022

5 years under Section 74(10): 28.02.2027

6 months prior under Section 74(2): 28.08.2026

So an SCN issued on 31.08.2026 gives me a prima facie limitation objection under Section 74(2).

Views of Experts solicited based on wordings of Sec 74(2)."The proper officer shall issue the notice under sub-section (1) at least six months prior to time limit specified in sub section (10) for issuance of order".

AI Summary

Section 74(2) notice limitation raises a statutory timing objection where the prescribed six-month interval before the order deadline is unmet.
Section 74(2) requires a show-cause notice to be issued at least six months before the outer time limit for an order under Section 74(10). A notice issued within that period may be challenged for non-compliance with this statutory timing requirement. The mandatory or directory character of the requirement remains contested, and the calculation of six months may depend on whether calendar-month or date-to-date computation applies. Actual issuance, portal upload, DIN generation and communication dates require verification.