2021 (6) TMI 823

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....Tax, Corporate Circle/first respondent in terms of the provisions of the Income Tax Act, 1961 (in short 'Act'). Though the assessments are assailed on several grounds, after hearing Mr. R. Sivaraman, learned counsel for the petitioner and Mrs. Hema Muralikrishnan, learned Senior Standing Counsel for the respondents, the legal issue that emerge is whether a show cause notice has to be issued prior to finalisation of assessments under the Act. 2. In this case, admittedly, two pre-assessment notices have been issued leading to some exchange of communications inter se the parties. However, no show cause notice crystallizing the issues dealt with in the assessment orders have been crystallised as such and put to the petitioner for rebut....

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....ations have been sought regarding the scope and applicability of the aforesaid Instruction to cases being scrutinized. .............. 4. The Board further desires that in all cases under scrutiny, where the Assessing Officer proposes to make additions or disallowances, the assessee would be given a fair opportunity to explain his position on the proposed additions/disallowances in accordance with the principle of natural justice. In this regard, the Assessing Officer shall issue an appropriate show-cause notice duly indicating the reasons for the proposed additions/disallowances along with necessary evidences/ reasons forming the basis of the same. Before passing the final order against the proposed additions/disallowances due considera....