The court found that the inadequate response time violated the principles of natural justice and caused prejudice

In a recent ruling, the Karnataka High Court has ruled that a minimum seven-day response period shall be granted mandatorily for the notices issued under Section 148A(b) of the Income Tax Act, 1961. The petitioner, Bangalore Thulaseedas Srinath challenged several notices and orders issued to the petitioner, including those under Sections 148A(b), 148A(d), 148, 147 r/w 144 and 144B and related penalty notices under Section 274 read with Sections 272A(1)(d), 270A and 271B. Get a Copy of Income Tax Act, Click here The petitioner submitted that the income tax notice issued under Section 148A(b) of the Act was issued on 11.03.2024 and was directed to make out a reply on 15.03.2023, which time period is less than the time stipulated under Section 148A(b). It was argued that these deadlines did not comply with the statutory requirement of providing at least seven days for a response, as stipulated in Section 148A(b) of the Act. This section mandates that the assessee must be given a minimum of seven days to respond to a notice before a notice under Section 148 can be issued. The Section 148A(b) of the Income Tax  Act reads as follows:- “148A. The Assessing Officer shall, before issuing any notice under section 148.- (a) xxx                                                                              (b) Provide an opportunity of being heard to the assessee, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a);” Get a Copy of Income Tax Act, Click here Justice S. Suni Dutt Yadav agreed with the petitioner’s argument, finding that the inadequate response time violated the principles of natural justice and caused prejudice. Consequently, the court declared the notices issued under Section 148A(b) as well as the subsequent orders and penalty notices, to be invalid. Consequently, the notices and orders in question were set aside, with the court granting the Revenue the liberty to issue new notices and take appropriate action in accordance with the law.