Kerala HC sets aside Order Passed u/s 148(A) of Income Tax Act without Providing Opportunity of Hearing

In a recent case, the Kerala High Court set aside an order passed under section 148(A) of the Income Tax Act, 1961 without providing the opportunity for a hearing. It was observed that the opportunity for personal hearing is explicit in Section 148 A (b) of the Act.

Thirukochi Motor Vehicle Owner's Credit Cooperative Society Ltd, the petitioner has filed the writ petition challenging the order issued by the 1st respondent under Section 148 A (b) of the Income Tax Act, 1961  contending that the petitioner was not given an opportunity of hearing before passing the said order.

Section 148 A (b) of the Income Tax Act strictly states that an opportunity of being heard to the assessee must be provided 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.

A single bench Justice Murali Purushothaman observed that the opportunity of a personal hearing is explicit in Section 148 A(b) of the Income Tax Act and it was evident that the petitioner was not given an opportunity of hearing before passing the order

The Court set aside the assessment order passed in violation of the principles of natural justice. The court directed that 1st respondent shall pass fresh orders according to the notice after hearing the petitioner, expeditiously. S Saju, A V Sajan, Anjanadevi G, Swetha S and Naina Fahimath M S appeared for the petitioner. Christopher Abraham appeared for the respondent department

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates