Seven-Day Section 148A Response Period Mandatory: Karnataka High Court

ITO Vs Ramanath Narayan Shetty (Karnataka High Court)

Seven Days Means Seven Days: Karnataka High Court Rejects Revenue’s Appeal Against Quashing of Reassessment Notice

Reassessment Notice Invalid for Denying Statutory Response Period

The Karnataka High Court has held that where Section 148A of the Income-tax Act, 1961 mandates that an assessee must be given at least seven days to respond to a show-cause notice, the Assessing Officer cannot curtail that period. A notice granting less than the statutorily prescribed period is invalid, and all consequential reassessment proceedings are liable to be quashed.

The Division Bench dismissed the Revenue’s writ appeal and upheld the order of the learned Single Judge, who had quashed the notices and all further proceedings on the ground that the assessee was not provided the mandatory minimum period of seven days.

The ruling reiterates that the opportunity contemplated under Section 148A is a statutory safeguard and not an empty procedural formality.

Facts of the Case

The Income Tax Department initiated reassessment proceedings against the assessee, Sri Ramanath Narayan Shetty.

The Assessing Officer issued a notice dated March 7, 2023, under Section 148A, calling upon the assessee to furnish his reply on or before March 13, 2023. Thus, the notice did not provide the assessee with the minimum statutory period of seven days.