Validity of assessment - Though the Income Tax Act does not ...

Income Tax Act: Show Cause Notice Not Explicitly Required for Scrutiny, But Recommended for Fair Procedure.

June 24, 2021

Case Laws     Income Tax     HC

Validity of assessment - Though the Income Tax Act does not anywhere contemplate issuance of a show cause notice prior to finalisation of scrutiny assessments, as a matter of procedure and good office, the Assessing Authority is expected to crystalise the issues arising from the return of income filed by an assessee, the questionnaires issued under Section 142(1) and notices under Section 143(2) and responses thereto, issue a show cause notice setting out the issues, solicit the response of the assessee and pass orders only thereafter, after hearing the assessee concerned. - HC

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