Seven clear days requirement: a notice giving fewer days is procedurally invalid, rendering consequent proceedings null.

Notice issued under Section 148A(b) of the Income-tax Act required seven clear days for response, excluding the date of issuance and the date for compliance; a shorter compliance period breaches that statutory mandate and renders the notice procedurally defective. Applying that legal requirement, the notice that afforded only six clear days failed the statutory test and is invalid, with the consequent assessment proceedings treated as nullity. The decision addressed only procedural validity and did not adjudicate assessment merits.

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Issues: Whether the notice issued under Section 148A(b) of the Income-tax Act, 1961 dated 15/03/2022 is valid for want of compliance with the statutory requirement of giving seven clear days for response.

Analysis: The statutory scheme requires that a notice under Section 148A(b) must afford seven clear days for compliance, excluding the date of issuance of the notice and the date for compliance. The Tribunal followed the decision of the Hon'ble Jurisdictional High Court of Ranchi and the precedent of the ITAT Ranchi Bench which held that a shorter compliance period violates the statutory mandate and renders the notice unsustainable. In the present case the notice afforded only six clear days for response. Applying the legal principle established by the cited authorities, the notice does not meet the seven clear days requirement and is therefore procedurally defective. The Tribunal did not consider the merits of the assessment but confined its decision to the validity of the notice in light of the procedural deficiency.

Conclusion: The notice under Section 148A(b) of the Income-tax Act, 1961 is invalid for failure to grant seven clear days for compliance; the consequent proceedings are rendered nullity and the appeal is allowed in favour of the assessee.

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