Facts of the Case

The assessee, Sunil Kumar, Bokaro, filed an appeal against the order dated 17.01.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi for Assessment Year 2018-19. There was a delay of 12 days in filing the appeal, for which the assessee filed a petition seeking condonation. The Tribunal condoned the delay considering its brevity and the reasons furnished. Reassessment proceedings were initiated by issuance of notice under Section 148A(b) dated 15.03.2022, granting time for compliance only up to 17.03.2022.

Issues Involved

Whether a notice issued under Section 148A(b) granting less than the mandatory statutory period of seven days for response is valid in law, and whether such non-compliance renders the reassessment proceedings and consequential assessment order void ab initio.

Petitioner’s Arguments

The assessee contended that the notice issued under Section 148A(b) on 15.03.2022 granted only two days for compliance, which was contrary to the mandatory requirement of minimum seven days prescribed under the Act. Reliance was placed on the judgment of the Hon’ble Jharkhand High Court in Satish Kumar (WP(T) No. 2640/2023 dated 28.08.2023), which had been followed by the coordinate bench of the Tribunal in Mantosh Kumar (ITA No. 80/Ran/2024 dated 18.08.2025), wherein reassessment notices issued with insufficient response time were held to be invalid.

Respondent’s Arguments

The Revenue strongly 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 binding judgment of the Hon’ble Jharkhand High Court in Satish Kumar and the coordinate bench decision in Mantosh Kumar. The Tribunal noted that the notice under Section 148A(b) granted less than the statutorily prescribed seven days to the assessee for response. Respectfully following the jurisdictional High Court ruling, the Tribunal held that such notice was 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 time limit prescribed under Section 148A(b) is mandatory and not a mere procedural formality. Failure to grant the statutory seven days vitiates the assumption of jurisdiction and renders the entire reassessment proceedings invalid.

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 and unsustainable in law.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769081007_SUNILKUMARBOKAROVS.ITOWARD31BOKARO.pdf

 

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