Seven clear-day notice requirement under section 148A(b) invalidates assessment where the statutory minimum response period was not given.

A notice under section 148A(b) must specify a response period of not less than seven clear days; omission of the statutory minimum renders the notice invalid and any assessment framed on that basis liable to be set aside. The analysis applies the clear-days construction (excluding date of issue and date of response) and follows higher and coordinate bench authority distinguishing precedents where delay in filing a reply, rather than denial of the minimum period, was determinative. Operative effect: notices failing the seven clear days requirement invalidate subsequent assessment proceedings and benefit the assessee.

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Issues: Whether the notice issued under section 148A(b) of the Income-tax Act, 1961 which did not provide the assessee seven clear days to respond is invalid and whether the assessment framed pursuant to such notice is liable to be quashed.

Analysis: The statutory requirement in section 148A(b) prescribes that a notice to show cause must specify a time for response being not less than seven days. The Tribunal examined the notice period actually given and applied the principle that "not less than seven days" requires seven clear days excluding the date of issuance and the date specified for response. The Tribunal followed the decision of the Jurisdictional High Court (Satish Kumar) and related coordinate-bench authority which held that failure to provide seven clear days renders the notice invalid. The Tribunal distinguished prior decisions (Anuj Ghuliani) where the factual issue was delayed filing of a reply and the remedy was reconsideration, noting those cases did not involve denial of the statutory minimum period. Applying the legal requirement to the facts, the notice failed to afford the statutory minimum period and the consequent assessment proceedings were founded on an invalid notice.

Conclusion: The notice under section 148A(b) of the Income-tax Act, 1961 is invalid for not providing seven clear days to respond; the assessment order framed pursuant to that notice is quashed. The appeal is allowed in favour of the assessee.

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