TaxTMI 
TaxTMI 
2025 (7) TMI 1504
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....ting business income i.e. 20% of the of the total credit entries in its bank account of Rs. 57,19,915/-. Rs.11,43,983/- 2. Addition on account of bank interest Rs.6,306/- 3. As per the assessment order, the assessee had failed to furnish relevant documents/evidence as per query letter of the department. The same were furnished at the appellate stage. Therefore, the Ld. CIT(Appeals)/NFAC in the interest of natural justice had remanded all the evidences furnished for the first time before him to the file of the A.O for necessary enquiry and verification. For the sake of completeness, the relevant findings of the Ld. CIT(Appeals)/NFAC are culled out as follows: "5. Observation and Decision: As per Information available with the department that during the F.Y. 2017-18 Rs. 33,655/- had been deposited by the assessee(AOP) in its bank account maintained with Canara Bank and also credited interest of Rs. 6.306/- and no return of income had been filed by the assessee relevant to the assessment year 2018-19. The AO had issued a notice u/s.148 of the Act on 30.03.2022. In response, the assessee had filed return u/s.148 on 11.06,2022 but did not verify the same....
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....itted all the required documents to establish that the credit entry appearing in bank statement pertains to educational activities i.e. deposit of fees collects from the students we are enclosing herewith all the documents which were produced before AO during the course of proceeding before. As regard to addition of interest of Rs 6,306/- received from Canara bank during the year, we hereby inform you that the same interest is already been credited in audited profit and loss account and therefore the impugned addition is also liable to be deleted" During the course of appellate proceedings, the appellant society has uploaded its submission along with computation sheet of its income, audit report and document of RC-byelaws. In view of the above, in the interest Of natural justice, I consider that it would be appropriate to set aside the order of the Assessing Officer (AO) passed u/s 144 r.w.s 147 read with section 144B of the I.T.Act.1961 on 28/02/2023 in view of the new amendment (provision) inserted by the Finance (No.2) Act. 2024 w.e.f. 01.10.2024, with the direction that the Ld. AO will frame the assessment afresh after verifying the various documents/....
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.... as under: "5. I have heard Learned Counsel appearing for the parties and perused the above referred to documents/Annexures and other material available with due care. 6. From perusal of the documents/Annexures, it appears that the order dated 4.4.2022 (Annexure P2) passed under Section 148A(d) of the Act has been passed with regard to a transaction which occurred in the financial year 2014-15 after serving a notice dated 25.3.2022 (Annexure P1) and giving a mere 7 days' time to the Petitioner/assessee to furnish a reply to the said notice. The time granted to the Petitioner/assessee to submit reply to the said notice appears to be unreasonable short and the Petitioner/assessee cannot be blamed for not being able to file the reply within such a short period. Thus, it appears that there is a violation of principle of natural justice. Therefore, the prayer made on behalf of the Petitioner/assessee appears to be reasonable. Thus, the order dated 4.4.2022 (Annexure P2) passed under Section 148A(d) of the Act and the notice dated 5.4.2022 (Annexure P3) issued under Section 148 of the Act are quashed and the Respondents are directed to afford proper opportunity of h....
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............ 9. ....................... In every case the words have to be construed in the context taking into consideration the language used and the object to be achieved. As we have said above, the use of the words "not being less than one month" implies the giving of a clear month excluding both the first and the last day of the month .................................................................... Emphasis supplied. 8. Thus, we see that the law is no more res-integra; inasmuch as, the words 'not be less than 7 days' implies that clear seven days is obligatory to be given to the Assessee. Thus, on the one hand the notice which was given to the petitioner under Section 148A(b) was not in accordance with the provision of the Act, inasmuch as, only 6 clear days was given to him. So, on this score alone the notice under Section 148A(b) deserves to be quashed and set aside." 3. Counsel for the respondents does not dispute the said proposition of law laid down in that case. 4. Therefore, the writ petition is allowed. The impugned ex-parte assessment order as well as the penalty orders passed by the respondents are set aside. The ....
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....ed to be given to the Assessee for filing reply. This 7 day is to be calculated by ignoring the date of issue and the last date of submission. In other words, minimum 7 clear days has to be provided to the Assessee for filing reply. In this regard reference may be made to the case of Pioneer Motors (Private) Ltd. Vs. Municipal Council, Nagercoil reported in AIR 1967 SC 684 wherein at paragraph 8 and 9 the Hon'ble Apex Court has deliberated the issue with regard to counting of dates. "8. The words "not being less than one month" do imply that clear one month's notice was necessary to be given, that is, both the first day and the last day of the month had to be excluded. ............................... " When...... 'not less than' so many days are to intervene, both the terminal days are excluded from the computation". ........................................... 9. ....................... In every case the words have to be construed in the context taking into consideration the language used and the object to be achieved. As we have said above, the use of the words "not being less than one month" implies the giving of a clear month excl....