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2011 (9) TMI 673 - KARNATAKA HIGH COURTPrinciple of natural justice - wealth escaped assessment. - Assessment made without issue of show cause notice - AO demanded books of accounts - Held That:- The Assessing Authority has not taken note of the said returns filed. He has no other material on record. Even if we were to make an order on best judgment assessment, the proviso to Section 16(5) of the Act mandates that a notice is to be given. The Assessing Authority has neither given a notice under Section 16(2) nor a notice as contemplated in the proviso to Section 16(5) of the Act and has passed the impugned order. Hence, not only the impugned order violates the mandatory provisions of law inasmuch as Section 16(2) of the Act. as rightly held by the Tribunal, but also the order is also violative of principles of natural justice.
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