Case Law Details
ITO Vs Vazhakkulam Block Rural Co-Operative Society Ltd. (Kerala High Court)
Introduction: In a recent judgment, the Kerala High Court addressed the requirement of a personal hearing before the issuance of orders under Section 148A(d) of the Income Tax Act. The case, ITO Ward-2 Vs Vazhakkulam Block Rural Co-Operative Society Ltd., involved an appeal by the Revenue against a judgment passed by a learned Single Judge.
Detailed Analysis: The appeal stemmed from a writ petition filed by Vazhakkulam Block Rural Co-Operative Society Ltd., challenging an order (Ext.P5) passed by the Income Tax Officer Ward-2, Aluva, under Section 148A(d) of the Income Tax Act, and the consequential notice (Ext.P6) proposing a re-assessment of income for the assessment year 2019-20.
The petitioner contended that the order was passed without affording them a personal hearing, as mandated under Section 148A(b) of the IT Act, thereby violating the principles of natural justice. The learned Single Judge concurred, quashing the order and notice, and directing the petitioner to appear for a hearing.
The appellant argued that personal hearing is not mandatory for an inquiry under Section 148A(d) of the IT Act. However, the Division Bench recently held in Income Tax Officer v. Asamannoor Service Co-operative Bank Limited that the assessee must be granted an opportunity of being heard, including the right of personal hearing.
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