Notice issued on next day to limitation as per law due to limitation date being a Sunday - Validity

Facts:

Assessee challenged that the assessment under Section 143(3) was done without issuing a notice as per time limit imposed by law. The notice under Section 143(2) was issued on 1st October 2018 while 30th September 2018 the due date of limitation as per law happened to be a Sunday. Revenue's counter was that as per General clauses Act, if the due date happens to be a Sunday which is a closed day then the validity of issuance of notice shall fall on the next working day i.e. 1st October 2018 in this case, thus the assessment was valid. On appeal by the assessee -

Held in favour of the assessee that the notice was issued on the next working day to 30th September 2018 a Sunday thus was properly served as per law (General Clauses Act).

Assessment was thus valid.

Ed. Note: The hyper technicality of the limitation involved in this case and the limitation needs to be noted.

Case: Priyal Kauhshal Shah v. ITO 2023 TaxPub(DT) 1845 (Ahmedabad SMC Bench)