2025 (6) TMI 2040 - AT - Income Tax

Time granted to file response for notice issued u/s 148A - less than 7 days provided - HELD THAT - We observe that the AO is not granted 7 days time to the assessee for responding in response to notice u/s 148A(b) of the Act. In our opinion the issue is squarely covered by the judgement of Thulaseedas Srinath 2024 (6) TMI 1477 - KARNATAKA HIGH COURT wherein held time granted short of the minimum period of 7 days prescribed in the said provision thus impugned notice and consequential proceedings including the impugned assessment order notices etc. deserves to be quashed. Assessee appeal allowed.

Summary

The Appellate Tribunal (ITAT Bangalore) dismissed the revenue's appeal against the CIT(A) order for AY 2018-19 under section 250 of the Income Tax Act, 1961. The key issue was the validity of the notice issued under section 148A(b) of the Act, which granted the assessee less than the mandatory minimum period of seven days to respond. Citing the jurisdictional High Court's ruling in *Thulaseedas Srinath vs. ITO* (WP No.14325 of 2024), the Tribunal held that "not less than seven days ought to be provided for making out a reply to the notice," and failure to do so "results in prejudice and violation of principles of natural justice," rendering the proceedings "void ab initio." The Tribunal also relied on *Doddagarudanahalli Vyavasaya Seva Bank Niyamitha vs. ITO* [2025] 174 taxmann.com 864, which affirmed the statutory minimum period under section 148A(b). Consequently, the impugned notice and consequential proceedings were quashed, and the revenue's appeal was dismissed.