Imran Ahmad Vs ITO (ITAT Ranchi)
Summary: The ITAT Ranchi held that the notice issued under Section 148A(b) of the Income Tax Act, 1961 was invalid because the assessee was not provided the statutorily mandated seven clear days to respond.
The notice dated 12.03.2022 required the assessee to submit the response by 18.03.2022. Excluding the date of issuance and the date fixed for response, the assessee received only five clear days. The Tribunal held that Section 148A(b) requires a minimum of seven clear days.
The Tribunal followed the decision of the Jharkhand High Court in Satish Kumar Vs. PCIT, which had interpreted the expression “not less than seven days” and held that both terminal dates must be excluded. The principle regarding computation of such statutory periods was traced to the Supreme Court’s decision in Pioneer Motors (Private) Ltd. Vs. Municipal Council, Nagercoil.
The Tribunal consequently held the notice under Section 148A(b) to be invalid and quashed the notice as well as all subsequent proceedings arising therefrom. Since the additional legal ground went to the root of the assessment proceedings, the other grounds on merits and other legal issues became academic.
List of Cases Discussed / Relied Upon
1. Satish Kumar Vs. PCIT — W.P.(T) No.2640 of 2023, dated 28.08.2023.
