A Single Bench of the Kerala High Court quashed notice issued under Section 148 A (b) of the Income Tax Act, 1961 as no reasonable opportunity of being heard was provided.
The petitioner, Bahuleyan Nair, is a Non – Resident Indian (NRI). The claim of the petitioner is that the petitioner is carrying out business in Sharjah (UAE). The petitioner received a notice under Section 148A (b) of the Income Tax Act requiring him to show cause as to why, in view of the annexure enclosed with the notice, a notice under Section 148 of the Income Tax Act should not be issued.
The petitioner filed reply to the said notice taking various ground that the Show Cause notice was not maintainable as Section 149 of the Income Tax Act specifically provided that unless entries in the books of accounts which has escaped assessment is more than Rs.50,00,000/- (Rupees Fifty Lakhs only), no notice can be issued for an assessment year. The petitioner was not provided any facility of being heard in person and no consideration of the reply, the impugned order Notice was passed.
Section 148 A (b) of the Income Tax Act especially provides the opportunity of being heard to the assessee by serving him with a notice.
The Court of Justice Dinesh Kumar Singh observed that “There is no opportunity of being heard provided to the petitioner, issued the impugned order and thereafter Notice which are unsustainable. The present petition is allowed. The impugned order and Notice are set aside. The matter is remanded back to the respondents to pass a fresh order, after giving an opportunity of being heard to the petitioner.”
Nikitha Susan Paulson, Counsel appeared for the petitioner and Jose Joseph, Standing Counsel appeared for the Income Tax Department.
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