Section 148A(b) Notice Without Seven Clear Days Quashed by ITAT Cuttack

Akbal Zullur Rahman Vs ITO (ITAT Cuttack)

Seven Days Means Seven Clear Days: ITAT Quashes Reassessment Where Section 148A(b) Notice Allowed Compliance From 13 March to 20 March

Summary: The Cuttack Bench of the Income Tax Appellate Tribunal has held that a notice issued under Section 148A(b) is invalid where the assessee is not granted the statutory minimum period of seven clear days to submit his response. Since the jurisdictional notice itself was invalid, the Tribunal quashed the notice as well as the reassessment order passed on its basis.

Facts of the case

The assessee, Akbal Zullur Rahman, challenged the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, for Assessment Year 2020-21.

The assessee’s appeal before the Tribunal was filed with a delay of 252 days. A petition seeking condonation of delay was filed, explaining the reasons for the belated filing. After considering the contents of the petition, the Tribunal accepted that sufficient cause had been shown, condoned the delay and proceeded to dispose of the appeal on merits.

The central controversy related to the time provided to the assessee under the notice issued in the reassessment proceedings.

The Assessing Officer issued a notice under Section 148A(b) on 13 March 2024, requiring the assessee to furnish his response on or before 20 March 2024.