Show-cause notice requirement mandates disclosure and a fair opportunity to reply before issuing tax escape notices.

Clause 281 mandates that when the Assessing Officer has information suggesting escaped assessment, he must serve a show-cause notice containing that information and permit the assessee to reply within a specified period; after considering the record and any reply, and obtaining prior approval of the specified authority, the Assessing Officer will determine whether it is a fit case to issue a tax-escape notice. The pre-notice requirement is excluded where the information arises from the notified information-sharing scheme, Approving Panel directions, or authoritative orders from tribunals, courts, or other proceedings.

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