Section 148A(b) Notice Invalid for Lack of Seven Clear Days: ITAT Ranchi

Nutan Pandey Vs ACIT/DCIT (ITAT Ranchi)

Seven Clear Days Means Seven Complete Days: Defective Section 148A(b) Notice Invalidates Reassessment and Subsequent Section 263 Order—Ranchi ITAT

Summary: The Ranchi Bench of the Income Tax Appellate Tribunal has held that a notice under Section 148A(b) must provide the assessee with a minimum of seven clear days to furnish a response. Where the notice was issued on 22 March 2022 and compliance was required on or before 29 March 2022, the statutory requirement of seven clear days was not satisfied.

Consequently, the Tribunal quashed the notice under Section 148A(b), the consequential reassessment proceedings and the revisionary order subsequently passed under Section 263.

The decision was rendered in Nutan Pandey v. ACIT/DCIT, Central Circle, Jamshedpur, ITA No. 269/Ran/2026, Assessment Year 2018-19, order dated 10 September 2026.

Facts of the case

The assessee, Smt. Nutan Pandey, carried on business as the proprietor of M/s Kaushal Associates.

The case was flagged under the CBDT’s risk-management strategy through the Insight Portal under the category of “High Risk CRIU/VRU Cases.” The information suggested that the assessee had recorded bogus purchases and sales without any actual movement of goods.

Based upon this information, the Assessing Officer issued a show-cause notice under Section 148A(b). Thereafter, notice under Section 148 was issued on 6 April 2022.