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<h1>High Court rejects Department's reference request under Income-tax Act, upholds assessee's right to be heard</h1> The High Court of Karnataka rejected the Department's request for a reference under section 256(2) of the Income-tax Act, 1961. The court upheld the ... Penalty The High Court of Karnataka rejected the Department's request for a reference under section 256(2) of the Income-tax Act, 1961. The court upheld the decision that the assessee should be given an opportunity to be heard before levying interest under section 217, even after the assessment is concluded under section 143(3). The court noted that a similar matter had been concluded by a previous decision and rejected the civil petition.
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