The recent ruling by the Kerala High Court emphasizes the importance of providing a personal hearing to the assessee in inquiries conducted under Section 148A(b) of the Income Tax Act. This decision, delivered by Justice A.K. Jayasankaran Nambiar and Justice Kauser Edappagath, clarifies the procedural requirements for such inquiries.
The court’s decision was based on a previous ruling by a division bench in the case of Income Tax Officer v. Asamannoor Service Co-operative Bank Limited. In that case, the court had held that providing a personal hearing is mandatory in such inquiries. The court’s reasoning in that case was that the principles of natural justice require that an opportunity be given to the assessee to present their case before any adverse decision is made against them.
The court also noted that the requirement of providing a personal hearing is in line with the fundamental right to a fair trial guaranteed under Article 21 of the Indian Constitution. Denying an assessee the opportunity to present their case in person would be a violation of this fundamental right.
The court’s decision is significant as it underscores the importance of procedural fairness in tax proceedings. It serves as a reminder to tax authorities to adhere to the principles of natural justice and provide a fair and impartial hearing to taxpayers.
The ruling also highlights the role of the judiciary in upholding the rights of taxpayers and ensuring that they are treated fairly under the law. By affirming the requirement of providing a personal hearing, the court has strengthened the safeguards against arbitrary or unjust actions by tax authorities.
In conclusion, the Kerala High Court’s decision reaffirms the importance of providing a personal hearing to the assessee in inquiries under Section 148A(b) of the Income Tax Act. It underscores the principles of natural justice and the fundamental right to a fair trial, ensuring that taxpayers are given a fair opportunity to present their case before any adverse decision is made against them.
