Orissa High Court (HC) chaired by Chief Justice Dr. S. Muralidhar and Justice M.S.Raman in its recent judgment quashed the reassessment order of the Assessment Officer (AO) issued under Section 148 of the Income Tax Act, 1961.
The writ petitions were against the department notice issued to the Petitioner-Assessees under Section 148 A(1)(b) of Income Tax Act and the consequential order was passed under Section 148A(1)(d) Income Tax Act.
The counsel for petitioners have also assailed both the notice under Section 148A(1)(b) of the Income Tax Act as well as the consequential order under Section 148A(1)(d) Income Tax Act on several grounds including the ground of limitation, not considering the objections filed, not providing a personal hearing, non-application of mind to the peculiar facts of each case and several other grounds.
The counsel of petitioner asserted the case Anshul Jain v. Principal Commissioner of Income Tax which had held that there was no warrant for interference by the Court at the stage where an order had been passed under Section 148 A(1)(d) of the Income Tax Act and that all the grounds of challenge to such order could be urged at the stage of challenging the order passed in the reassessment proceedings consequent upon the notice under Section 148 of Income Tax Act.
The bench observed that the Calcutta High Court in Dinesh Kumar Goyal v. Union of India interfered with an order under Section 148 A(d) of the Income Tax Act on the ground that ‘personal hearing’ was not given to the Assessee prior to the passing of the said order.
The bench consequently directed the AO to pass an appropriate order under Section 147 read with Section 148 of the Act.
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