Personal Hearing Mandatory in Income Tax Reassessment Proceedings

By Amit Naik , Law Updates Made Simple.

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07 March 2024

What happened

judgement

Subject : Tax Law - Income Tax

Personal Hearing Mandatory in Income Tax Reassessment Proceedings

Background:

A taxpayer challenged an order passed by the Income Tax Officer under Section 148A(d) of the Income Tax Act (IT Act) and the consequential notice issued under Section 148, alleging that the officer had failed to provide an opportunity of being heard as required under Section 148A(b) of the IT Act.

Legal Question:

Whether a personal hearing is mandatory in an enquiry under Section 148A(b) of the IT Act.

Arguments Presented:

Taxpayer: Argued that Section 148A of the IT Act contemplates an opportunity of being heard, which includes the right of personal hearing.
Revenue: Contended that considering the nature of the proceedings and the scheme of the statute, a personal hearing is not required before passing an order under Section 148A(d) of the IT Act.

Court's Analysis and Reasoning:

The court relied on a recent Division Bench judgment of the same court which held that Section 148A of the IT Act contemplates an opportunity of being heard, including the right of personal hearing.

Decision:

The court dismissed the appeal filed by the Revenue, holding that personal hearing is mandatory in an enquiry under Section 148A(b) of the IT Act.

#TaxLaw #IncomeTax #NaturalJustice

Case Title: THE INCOME TAX OFFICER, Versus SHRI. MOHAMMED NOUSHAD,

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