Case Law Details
ITO Vs Asamannoor Service Co-Operative Bank Ltd. (Kerala High Court)
The Kerala High Court has recently delivered a landmark judgment in the case of ITO Vs Asamannoor Service Co-Operative Bank Ltd., addressing the vital aspect of providing a reasonable opportunity to be heard under Section 148A(b) of the Income Tax Act. This decision, dated 17.10.2023, emphasized the significance of adhering to the principles of natural justice in the process of reassessment under the Income Tax Act.
The core issue in this case revolved around the assessment order passed by the Income Tax Officer Ward-2, Aluva, proposing a re-assessment for the assessment year 2019-20 without affording the assessee, Asamannoor Service Co-Operative Bank Ltd., an adequate opportunity to be heard as mandated under Section 148A(b) of the Income Tax Act.
The appellant, in this case, contended that the mere issuance of a show cause notice under Section 148A(b) sufficed as providing an opportunity of being heard. However, the court found this interpretation to be too narrow and lacking in substance, emphasizing that an effective opportunity of being heard involves not just the issuance of a notice but also the consideration of the assessee’s reply and the granting of a personal hearing to present their case fully.
The Kerala High Court meticulously analyzed the provisions of Section 148A of the IT Act, asserting that the obligation to provide an opportunity of being heard goes beyond the mere issuance of a show cause notice. It requires active engagement with the assessee’s response and, crucially, the provision of a personal hearing. This interpretation aligns with the broader objectives of ensuring fairness and adherence to the principles of natural justice within the assessment process.
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