Alok Khatua Vs ITO (ITAT Cuttack)
Summary: The ITAT Cuttack held that a notice issued under Section 148A(b) of the Income Tax Act, 1961 must provide the assessee a minimum of seven clear days to respond. In the present case, the notice was issued on 22.03.2024 and required the assessee to respond by 29.03.2024. Excluding the date of issuance and the last date fixed for response, the assessee was not granted seven clear days. Following the judicial principle that both terminal dates are excluded when a statute requires “not less than” a specified number of days, the Tribunal held the notice to be invalid.
The Tribunal relied upon the Coordinate Bench decision in Prasanna Kumar Sethy vs. ITO and the decisions concerning Satish Kumar, Imran Ahmad and Mantosh Kumar. The underlying principle was traced to the Supreme Court decision in Pioneer Motors (Private) Ltd. vs. Municipal Council, Nagercoil, which explains the computation of a statutory period expressed in terms of “not less than” a specified number of days.
The Revenue relied upon Anuj Ghuliani vs. ITO, where the Delhi High Court had directed the Assessing Officer to consider a belated response. The Tribunal distinguished that decision because it concerned inadequate opportunity and consideration of a delayed reply, rather than a direct challenge to the statutory minimum seven-day period under Section 148A(b).
