Under section 148A(b) of the Income Tax Act 1961 the Kerala High Court has stated that the order issued without affording the personal hearing is not valid and set aside the reassessment order.
The order under Section 148 A(b) of the Income Tax Act, 1961, and notice under Section 148 of the Income Tax Act is challenged by Vazhakkulam Block Rural Co-Operative Society Ltd.
Because the personal hearing was not afforded to the applicant, the impugned order was challenged. The problem is been covered via the court’s judgment for the case of Asamannoor Service Co-operative Bank Ltd. Vs. the Income Tax Officer. Section 148A(b) initiates with furnishing a chance of getting heard by the taxpayer.
The hearing is not directed to filing an answer to show cause notice. When the provision of the same section contemplates the chance of getting heard that needs to be construed as a personal hearing.
Justice Dinesh Kumar Singh, on a single bench, overturned the previous order and instructed the petitioner to attend before the respondent on 12.12.2023. The petitioner must bring all relevant documents.
Furthermore, it was emphasized that upon the petitioner’s appearance, they would be given a chance to present their case. Following the assessee’s submission, the Assessing Officer(AO) should issue a fresh order.
Subsequently, the notice under Section 148 of the Income Tax Act should be pursued. Importantly, it was clarified that no additional hearing opportunities would be provided if the petitioner fails to appear on 12.12.2023.
| Case Title | Vazhakkulam Block Rural Co-Operative Society Ltd Vs ITO |
| Citation | WP(C) NO. 13727 OF 2023 |
| Date | 29.11.2023 |
| Counsel for Petitioner | Premjit Nagendran |
| Counsel for Respondent | Christopher Abraham |
| Kerala High Court | Read Order |
