2024 (4) TMI 1289 - HC - Income Tax

Validity of reopening proceedings - as argued authority has not given opportunity of hearing to the petitioner - Revenue contended that if the petitioner has not given opportunity of hearing the order passed by the authority should be set aside and remanded the matter to the very same authority to rehear the matter by giving opportunity of hearing to the petitioner. HELD THAT - As Revenue made a fair submission that opportunity of hearing has not been given to the petitioner the order passed by the authority u/s 148A(d) cannot be sustained in the eye of law and the issuance of consequential notice u/s 148 of the Income Tax Act under Annexure-2 also cannot be sustained in the eye of law. Thereby the same are liable to be quashed and are hereby quashed. This Court remits the matter to the very same authority to hear afresh by giving opportunity of hearing to the petitioner and pass appropriate order in accordance with law. Writ petition stands disposed of.

Summary

The Orissa High Court, in a writ petition challenging the order dated 23.03.2024 under Section 148A(d) and the subsequent notice under Section 148 of the Income Tax Act, 1961, held that the authority failed to provide the petitioner an opportunity of hearing before passing the order. The Court emphasized that "the order dated 23.03.2024 passed by the authority under Section 148A(d) ... cannot be sustained in the eye of law" and similarly quashed the consequential notice under Section 148. The Court remitted the matter to the same authority to rehear the case, directing that the petitioner be given an opportunity of hearing and an appropriate order be passed "in accordance with law." The writ petition was disposed accordingly.