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2023 (8) TMI 1370 - HC - Income TaxUpward adjustment by the AO to income - demand raised inclusive of interest levied u/s 234B/C - as argued demand raised is completely unsustainable as no show-cause notice was issued, as required under the proviso appended to Section 143(1)(a) - HELD THAT:- The petitioner could not respond to the email dated 29.05.2023. Since Mr Gupta [Respondent] has no instructions on whether the tab on the designated e-filing portal was operable, this aspect attains criticality. The reason is, even if we were to accept Respondents contention that there is no requirement to serve a show cause notice, what cannot be disputed by him is that there is a requirement to consider the response of the petitioner, in terms of the proviso appended to Section 143(1)(a) of the Act. Therefore, the terminology used in the email will make little difference to the outcome. What is relevant is that if an assessee is served with intimation by an AO, he should be in a position to respond to it, failing which the AO cannot consider it, which is the requirement of the provision. As regards the other submission concerning the grant of approval by the person(s) who executed the POA, we would like Mr Jain to place on record the consent given for instituting the writ petition, along with other relevant documents which would sustain the progress of the writ petition. We also note that although the intimation email dated 29.05.2023 adverted to a disallowance amounting, the addition, as stated above, was substantially more. Therefore, whether this intimation would suffice is another aspect that Respondents will have to answer on the next hearing date. Accordingly, issue notice. List the matter on 16.10.2023.
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