No Personal Hearing Despite Taxpayer’s Request: Calcutta HC Quashes Income Tax Reassessment Notice u/s 148A [Read Order]

In a recent ruling, the Calcutta High Court observed that a reassessment notice issued under Section 148A of the Income Tax Act, 1961 is invalid if the income tax department fails to grant a personal hearing to the taxpayer despite a specific request.

Usha Martin Telematics Ltd. filed a writ petition challenging a reassessment notice dated 29.04.2025 issued under Section 148A(3) for the assessment year 2019-20. The petitioner’s counsel argued that the company had replied to the initial notice under Section 148A(1) and specifically requested a personal hearing in its response dated 11.04.2025.

The department issued the final order under Section 148A(3) without granting the petitioner an opportunity to be heard. The reassessment notice under Section 148 was issued thereafter. The petitioner’s counsel argued that this omission amounted to a violation of the principles of natural justice.

The income tax department’s counsel acknowledged before the court that no personal hearing had been granted in this case, despite the petitioner’s clear request.

The single-judge bench of Justice Raja Basu Chowdhury observed that the scheme of Section 148A requires the assessing officer to give the assessee an opportunity to explain their position and to be personally heard before issuing a reassessment notice under Section 148. The court held that failure to provide such an opportunity violates the law and the principles of fairness.

The court found that the reassessment process was completed without following the required procedure and without giving the petitioner a fair chance to present its case. The court set aside the order issued under Section 148A(3) and directed the department to restart the process, this time granting a personal hearing to the petitioner.

The court allowed the writ petition and instructed the income tax department to complete the reassessment proceedings within twelve weeks from the date of communication of the order, after providing the petitioner with a personal hearing.

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