Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
Show cause notice is the foundation of subsequent proceedings; an adjudicatory order cannot be sustained if it rests on issues not pleaded in the show cause notice because the noticee had no opportunity to respond. The court recorded that the registry cancellation notice and order alleging fraud, willful misstatement/suppression and circular trading were on record, but held that deciding on unpleaded grounds violates the right to be heard and natural justice. The matter was remanded for fresh proceedings with detailed reasons and an opportunity to reply.
Show cause notice is the foundation of subsequent proceedings; an adjudicatory order cannot be sustained if it rests on issues not pleaded in the show cause notice because the noticee had no opportunity to respond. The court recorded that the registry cancellation notice and order alleging fraud, willful misstatement/suppression and circular trading were on record, but held that deciding on unpleaded grounds violates the right to be heard and natural justice. The matter was remanded for fresh proceedings with detailed reasons and an opportunity to reply.
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