The Kerala High Court set aside order passed under section 148 of Income Tax Act, 1961 as the court observed that the reply to show cause notice ( SCN ) issued not submitted on permitted time but before passing order need to be considered.
Fathima Abu, the petitioner has approached the court being aggrieved by order issued under clause (d) of Section 148A of the Income Tax Act, 1961 (‘the 1961 Act’). A challenge is raised to that order is on a short ground. It was submitted that though reply was submitted together with documents, the reply was not considered by the officer before issuing.
Sri. Keerthivas Giri, Standing counsel appearing for the respondents would point out that admittedly the reply submitted by the petitioner was filed after the time allowed for filing reply and this may be the reason as to why the officer did not consider the reply while passing order.
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Though the petitioner had not filed a reply within the time permitted by the officer, the fact remains that a reply was filed before the order was passed by the officer. It cannot be disputed that the reply of the petitioner was on record prior to passing of order. Therefore the officer was bound to take note of the reply while passing the order.
Since it is seen from order that the reply submitted by the petitioner has not been considered, the single bench of Justice Gopinath P set aside the order and consequential notice issued under Section 148 of the 1961 Act and direct that fresh orders be passed in terms of the provisions contained in Section 148 A (d) of the 1961 Act, after affording an opportunity of being heard to the petitioner.
Adv Preetha S.Nair appeared for the petitioner. Adv. P.G. Jayashankar and Keerthivas Giri appeared for the respondent.
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