In its recent order, the Calcutta High Court (HC) has held that the order passed without considering the objection filed by the petitioner against notice u/s 148A(b) of the Income Tax Act,1961 is not valid.
Mr Himangshu Kumar Roy and Ms Sangita Paul appeared for the Petitioner and Mr Om Narayan Rai appeared for the Respondent.
Rajesh Kumar Agarwal & Sons (HUF), the petitioner challenged the order dated 29th July 2022 relating to the assessment year 2017-2018 on the ground that the same has been passed without considering the objection filed by the petitioner against the notice under Section 148A(b) of the Income Tax Act,1961 and also on the ground that the said order is in violation of the principle of natural justice by not affording any opportunity of hearing to the petitioner in spite of specific request.
Under the new provisions, before issuing notice, AO is required to comply with the procedure under Section 148A of the act. Earlier to 1.4.2021 before the issue of notice u/s148 reason recorded by AO was the requirement. From 1.4.2021 issue of notice u/s 148A which is an opportunity for the assessee to explain his case when revenue requires it to be reopened. As per section 148(A), (a), AO is to conduct an enquiry, if required, with prior approval and by the provision under section 148A(b), the Opportunity of being heard is to be given to assesses, with prior approval.
Justice Nizamuddin set aside the impugned order dated 29th July 2022 and all subsequent notices only on the ground of violation of the principle of natural justice. The matter was remanded back to the Assessing Officer concerned to pass a fresh speaking order by the law after giving an opportunity of hearing to the petitioner or his authorised representative within eight weeks from the date of communication of this order.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
