Opportunity of hearing under reassessment procedure required before Section 148A(d) order; notice under Section 148 also set aside.

An order passed under Section 148A(d) of the Income-tax Act, 1961 cannot be sustained where the assessee was denied an opportunity of hearing. On the admitted procedural lapse, the consequential notice issued under Section 148 also fell with the order. The HC quashed both the order and the notice and remitted the matter to the authority for fresh consideration after granting the petitioner a hearing.

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Issues: Whether the order passed under Section 148A(d) of the Income-tax Act, 1961 and the consequential notice issued under Section 148 of the Income-tax Act, 1961 were sustainable when the assessee was not granted an opportunity of hearing.

Analysis: The order under Section 148A(d) was assailed on the ground of absence of hearing. The Revenue fairly accepted that opportunity of hearing had not been afforded. In view of the admitted procedural lapse, the order could not be sustained, and the consequential notice issued under Section 148 also fell with it. The appropriate course was to set aside the action and remit the matter for fresh consideration after granting hearing.

Conclusion: The impugned order under Section 148A(d) and the consequential notice under Section 148 were quashed, and the matter was remitted to the authority to decide afresh after giving the petitioner an opportunity of hearing.

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