Calcutta High Court rules that an Income Tax objection filed on the next working day is valid when the 30-day deadline falls on Sunday, relying on Section 10 of the General Clauses Act.
The Calcutta High Court has delivered an important ruling on the computation of statutory limitation periods under the Income Tax Act, holding that an objection filed on the next working day cannot be treated as time-barred merely because the prescribed deadline fell on a Sunday.
In GFK Mode Private Limited v. Union of India & Ors., WPA 17247 of 2026, decided on 24 September 2026, the Court examined whether an assessee could validly approach the Dispute Resolution Panel (DRP) on the next working day when the last date for filing objections fell on a Sunday. The Court answered the issue in favour of the taxpayer.
Background of the Case
The dispute arose in connection with the assessment proceedings of GFK Mode Private Limited for Assessment Year 2023-24.
The Assessing Officer had issued a draft assessment order, against which the assessee was entitled to file objections before the DRP under Section 144C(2) of the Income Tax Act, 1961.
The statutory period available for filing the objection was 30 days. In the present case, the last day of this period fell on 15 March 2026, which was a Sunday.
The assessee subsequently filed its objection before the DRP on 16 March 2026, i.e., the next working day.
However, the objection was treated as having been filed beyond the prescribed limitation period. The Assessing Officer proceeded to pass the final assessment order without allowing the DRP process to operate.
The assessee challenged the action before the Calcutta High Court.
Key Legal Issue Before the High Court
The principal question before the Court was whether an objection filed on the next working day could be regarded as being within time where the statutory deadline expired on a Sunday.
The issue required consideration of Section 10 of the General Clauses Act, 1897, which deals with situations where the last day prescribed for performing an act falls on a day when the relevant office is closed.
The provision essentially ensures that a person is not deprived of a statutory right merely because the prescribed last date happens to fall on a non-working day.
Calcutta High Court’s Decision
Justice Smita Das De held that the objection submitted by the assessee on 16 March 2026 was within the prescribed period of 30 days.
The Court applied the principle contained in Section 10 of the General Clauses Act and recognized the next working day as the appropriate day for filing the objection where the statutory deadline fell on a Sunday.
Consequently, the rejection of the assessee’s objection as time-barred was held to be legally unsustainable.
DRP Procedure Under Section 144C Is Mandatory
The judgment is significant not merely because of the limitation issue but also because of the consequences flowing from a valid DRP objection.
Under Section 144C, an eligible assessee has a statutory right to challenge variations proposed in a draft assessment order before the DRP.
Once a valid objection is filed, the DRP is required to consider the objections and issue appropriate directions. The Assessing Officer is required to complete the assessment in accordance with the statutory procedure and the directions issued by the DRP.
The High Court therefore held that the Assessing Officer could not bypass the DRP proceedings by treating the objection as delayed when, in law, it had been filed within time.
Final Assessment Order Set Aside
Since the assessee’s objection was found to be validly filed, the final assessment order passed without completion of the DRP proceedings could not be sustained.
The Calcutta High Court accordingly set aside the final assessment order and directed the DRP to consider the assessee’s objections on their merits after providing an opportunity of personal hearing.
The consequential penalty proceedings were also kept in abeyance until completion of the DRP proceedings.
Important Takeaway for Taxpayers
The decision reinforces an important principle of tax administration: procedural timelines must be interpreted in accordance with the applicable limitation law, particularly where the last day falls on a statutory holiday or a day when the concerned authority is closed.
Taxpayers should therefore carefully examine the actual last date for filing objections, appeals, replies and other statutory submissions.
At the same time, taxpayers should not treat this judgment as a general relaxation of limitation periods. Where a statutory deadline falls on a normal working day, the filing should ordinarily be completed within the prescribed period.
Conclusion
The Calcutta High Court’s ruling in GFK Mode Private Limited v. Union of India & Ors. provides useful guidance on the interaction between Section 144C of the Income Tax Act and Section 10 of the General Clauses Act.
The judgment protects an assessee’s statutory right to approach the DRP where the prescribed deadline happens to fall on a Sunday or other non-working day. It also emphasizes that the Assessing Officer cannot finalize an assessment by disregarding a valid DRP objection.
For taxpayers and tax professionals, the decision highlights the importance of correctly computing limitation periods and ensuring that procedural safeguards under the Income Tax Act are fully respected.