The High Court (HC) of Kerala has held that the Assessing Officer must hear the assessee before Issuing notice u/s 148 of the Income Tax Act, 1961.
K Viswanath, the Petitioner has approached the Court challenging the order issued under the provisions of Section 148 A of the Income Tax Act, 1961.
Under notice issued to the petitioner, the petitioner had filed a reply and also sought a personal hearing. It was submitted that provisions of Section 148 A of the Income Tax Act, 1961 contemplate that the reply of the petitioner shall be considered and the petitioner shall be heard before the officer, decides to proceed to the step of issuing notice under Section 148 of the Income Tax Act.
It was contended that the AO failed to follow the procedure and the order has been issued without affording to the petitioner an opportunity of being heard.
On a reading of Section 148 A of the Income Tax Act, 1961, Justice Gopinath P observed that before the officer proceeds to the stage of issuance of notice under Section 148 of the Income Tax Act, he has to comply with the procedure contemplated by Section 148 A of the Income Tax Act.
Justice Gopinath P observed that the Impugned Order does not show that the petitioner was afforded an opportunity fora personal hearing before the order was issued. The provisions of Section 148 A(b) indicate that an order can be issued only after affording an opportunity fora hearing.
In light of the observations, the Court quashed the Order and remanded the matter to the file of the 1st respondent, who shall issue fresh orders after following the procedure contemplated by Section 148A(b) of the Income Tax Act and also after affording to the petitioner an opportunity of being heard.
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