Order passed u/s 148 A(b) of Income Tax Act without Affording Personal Hearing is invalid: Kerala HC Sets aside Reassessment Order [Read Order]

The Kerala High Court has held that the order passed under section 148 A(b) of the Income Tax Act, 1961 without affording a personal hearing is invalid and set aside the reassessment order.

Vazhakkulam Block Rural Co-Operative Society Ltd, the petitioner challenged the order under Section 148 A(b) of the Income Tax Act, 1961 and notice under Section 148 of the Income Tax Act.

The impugned order was challenged on the ground that the personal hearing was not afforded tothe petitioner. The issue is covered by the judgment of the Court in the case of Asamannoor Service Co-operative Bank Ltd. Vs. the Income Tax Officer.

Section 148A(b) begins with “provide an opportunity of being heard to the assessee”. Hearing does not mean filing a reply to the show cause notice. If the provision of this Section contemplates the opportunity of being heard that has to be construed as a personal hearing.

A single bench of Justice Dinesh Kumar Singh set aside the order and notice and directed the petitioner to appear before the respondent on 12.12.2023 with all the relevant documents in his possession.

Further held that “On his appearance, the petitioner shall be afforded an opportunity of being heard. After considering the submission of the assessee, the assessing officershould proceed to pass a fresh order, and thereafter, proceed with the notice under Section 148 of the Income Tax Act. It is made clear that, if the petitioner does not appear on 12.12.2023, nofurther opportunity shall be granted to thepetitioner for hearing.”

To Read the full text of the Order CLICK HERE

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