2024 (1) TMI 1493

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....me Tax Act, 1961 ('the Act'), the order dated 27.03.2022 (Annex.4) passed under Section 148A (d) of the Act and the notice dated 27.03.2022 (Annex.5) issued under Section 148 of the Act. 2. It is, inter-alia, indicated that the petitioner was issued notice (Annex.1) dated 16.03.2022 under Section 148A (b) of the Act calling upon him to file his response by 23.03.2022, which notice is contrary to the requirement of provisions of Section 148A (b) of the Act, which requires a notice of not less than seven days. Submissions have been made that the days 16.03.2022 and 23.03.2022 have to be excluded, and as the time left is less than seven days, notice issued is bad. 3. Further submissions have been made that the notice issued is barred by limi....

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.... was prayed that the matter may be remanded back to the authority to provide opportunity to the petitioner as per law and thereafter pass a fresh order. 7. We have considered the submissions made by counsel for the parties and have perused the material available on record. 8. The notice under Section 148A(b) of the Act was issued to the petitioner pertaining to Assessment Year 2015-16, with the allegations that the petitioner has deposited in cash amount of Rs. 42,15,000/- in his saving bank account with Bank of Baroda and again it has been indicated that he has deposited cash aggregate Rs. 41,65,000/- in the bank account maintained with Bank of Baroda. The notice also invoked the provisions of Section 149(1)(b) along with explanation, wh....

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....l on Interpretation of Statutes, 10th Edition, p. 351 :- "..when........ 'not less than' so many days are to intervene, both the terminal days are excluded from the computation." 12. It has been laid down by the Hon'ble Supreme Court that both the terminal days have to be excluded for the purpose of complying with the requirement of words 'not less than .... days ". Admittedly, in the present case, the notice dated 16.03.2022 was issued/posted on 17.03.2022 and the date fixed for response was 23.03.2022. Excluding two days i.e. the date of sending of the notice as well the last date indicated, even if the notice was received by the petitioner, the same falls short of seven days' period, as envisaged by provisions of Section 148A(b) o....

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..../- only, which is clearly less than Rs. 50,00,000/-. 14. Section 149(1)(a) of the Act provides that no notice under Section 148 of the Act shall be issued for the relevant assessment year, if three years have elapsed from end of the relevant assessment year. The exception to the said provision has been provided under Clause (b), wherein a notice can be issued up to ten years, where the escaped assessment amount is Rs. 50,00,000/- or more. 15. As in the present case, the amount is less than Rs. 50,00,000/- and for the Assessment Year 2015-16, the notice has been issued on 16.03.2022 i.e. beyond three years, the same is ex-facie barred by limitation and consequently is without jurisdiction. 16. The mechanical exercise of powers by the resp....