Kishore Kumar Singh Vs D/ACIT (Patna High Court)
Patna High Court held that notice must be supported by reasons. Accordingly, since notice issued under section 148 of the Income Tax Act is not supported by reasons the same is liable to be quashed. Thus, writ petition stand allowed.
Facts- Core issue involved in the present lis is whether notice under Section 148 of the Income Tax Act, 1961 requires reasons in support of notice or not. The petitioners submitted that in the absence of reasons, notice is liable to be set aside. The respondents are exercising quasi judicial functions while invoking Section 148 of the Income Tax Act, 1961. In other words, the authority who has issued notice on 31.03.2021 is exercising quasi judicial functions. In such circumstances, whatever the notice issued must be supported by reasons. On this ground, the impugned notice is liable to set aside and writ petitions are to be allowed.
Conclusion- Held that in the present case, by virtue of notice under Section 148, petitioners are required to submit their explanation or whatever the materials. In this regard, unless and until petitioners are made known that they have to answer to the notice and it is not supported by reasons, otherwise they are not in a position to submit effective reply / explanation with the material information. On this score the petitioners have made out a case. Thus, writ petitions stand allowed. Reserving liberty to the respondents to issue fresh notice supported by reasons, such exercise shall be undertaken within a period eight weeks from today, reserving liberty to raise such other contentions on behalf of the petitioners are left open to be urged before concerned authority/forum.
