Facts of the Case

The assessee, Prawin Kumar, filed an appeal against the order dated 09.01.2025 passed by the Commissioner of Income Tax (Appeals), NFAC, Delhi for Assessment Year 2018-19. Reassessment proceedings were initiated by issuance of a notice under Section 148A(b) dated 22.03.2022, granting time to respond up to 28.03.2022. The assessee challenged the validity of reassessment on the ground that the statutory minimum period of seven days prescribed under Section 148A(b) was not provided.

Issues Involved

Whether a notice issued under Section 148A(b) granting less than seven days’ time for compliance is valid in law, whether such procedural non-compliance renders the reopening void ab initio, and whether the consequential reassessment order can survive.

Petitioner’s Arguments

The assessee contended that the notice under Section 148A(b) was issued on 22.03.2022 and the time allowed for compliance was only up to 28.03.2022, which was less than the mandatory seven-day period prescribed by statute. Reliance was placed on the decision of the Hon’ble Jharkhand High Court in Satish Kumar (WP(T) No. 2640/2023 dated 28.08.2023), which was subsequently followed by the coordinate bench of the Tribunal in Mantosh Kumar (ITA No. 80/Ran/2024 dated 18.08.2025), wherein similar notices were held to be invalid. It was submitted that the reassessment proceedings deserved to be quashed.

Respondent’s Arguments

The Revenue supported the orders passed by the Assessing Officer and the CIT(A) and contended that the reassessment proceedings were validly initiated.

Court Order / Findings

The ITAT Ranchi observed that the issue was squarely covered by the judgment of the Hon’ble Jharkhand High Court in Satish Kumar and the coordinate bench decision in Mantosh Kumar. The Tribunal held that the notice issued under Section 148A(b) granting less than seven days for response was contrary to the mandatory statutory requirement and therefore bad in law. Consequently, the notice issued under Section 148A(b) was quashed and, as a natural corollary, the consequential reassessment order was also quashed.

Important Clarification

The Tribunal clarified that compliance with the minimum statutory period prescribed under Section 148A(b) is mandatory and not a procedural formality. Failure to grant the prescribed seven days vitiates the entire reassessment proceedings, and such defect is not curable.

Final Outcome

The appeal filed by the assessee was allowed. The notice issued under Section 148A(b) of the Income-tax Act and the consequential reassessment order for Assessment Year 2018-19 were quashed as being invalid in law.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769080309_PRAWINKUMARRANCHIRANCHIVS.ITOWARD21RANCHIRANCH.pdf

 

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