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2014 (5) TMI 672 - HC - Income TaxJurisdiction of commissioner u/s 263 of the Act - Validity of notice u/s 148 of the Act – Opportunity of being heard – Held that:- The Commissioner received the records prior to the issuance of the show cause notice and opined that the AO failed to apply his mind objectively and failed to conduct an inquiry over the subscription of the shares to various subscribers at a high premium - Section 263 of the Act never envisages the separate recording of the satisfaction before issuance of the show cause notice - the order of the AO appears to be erroneous and a prejudice is caused to the revenue, it would render the said show cause notice legal and valid - Commissioner has indicated the same sufficiently in the show cause notice and afforded the opportunity to the assessee to file reply - Whether the order can sustain on legal parameters or not, can be tested by a Higher Authority who have been bestowed with the power of appeal - Section 253 of the Act provides a remedy of appeal against an order passed u/s 263 of the Act by the Commissioner, such remedy is required to be resorted by the asseessee - Decided against Assessee.
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