No Show Cause Notice is required to be issued for making addition under section 68 of Income Tax Act :
The first argument of the appellant is that no show cause notice
was issued before the addition was made by resorting to Section 68 of the
Act. The statutory provision does not specifically state that a show cause
notice is required to be issued. What is required is that where any sum is
found credited in the books of the assessee and it is pointed out by the
Assessing Officer, the assessee is required to offer an explanation about the
was issued before the addition was made by resorting to Section 68 of the
Act. The statutory provision does not specifically state that a show cause
notice is required to be issued. What is required is that where any sum is
found credited in the books of the assessee and it is pointed out by the
Assessing Officer, the assessee is required to offer an explanation about the
nature and source thereof and if the assessee offers no explanation or the
explanation offered by him is not, in the opinion of the Assessing Officer,
satisfactory, the sum so credited may be charged to income tax. Admittedly,
in the instant case, the assessee has been put on notice and the assessee had
participated in the assessment proceedings and submitted their explanation.
explanation offered by him is not, in the opinion of the Assessing Officer,
satisfactory, the sum so credited may be charged to income tax. Admittedly,
in the instant case, the assessee has been put on notice and the assessee had
participated in the assessment proceedings and submitted their explanation.
We do not agree with the submission that the assessee did not have
adequate opportunity to put forth their case, as the Assessing Officer has
recorded that the assessee has been represented by the authorized
representative and if according to the assessee, the documents have not been
properly appreciated or to be appreciated in the manner as decided by the
assessee, it is for the assessee to agitate the same before the appellate
authority and there is no justifiable or valid reason for the assessee to bypass
the appellate remedy available under the Act.
adequate opportunity to put forth their case, as the Assessing Officer has
recorded that the assessee has been represented by the authorized
representative and if according to the assessee, the documents have not been
properly appreciated or to be appreciated in the manner as decided by the
assessee, it is for the assessee to agitate the same before the appellate
authority and there is no justifiable or valid reason for the assessee to bypass
the appellate remedy available under the Act.
HIGH COURT OF MADRAS
Vishwatej Developers (P.) Ltd.
v.
Assistant Commissioner of Income Tax, Company Circle V(2), Chennai
T.S. SIVAGNANAM AND SATHI KUMAR SUKUMARA KURUP, JJ.
W.A. NO. 1791 OF 2021
C.M.P. NO. 1181 OF 2021
C.M.P. NO. 1181 OF 2021
AUGUST 23, 2021
P.H. Aravind Pandian, Sr. Counsel and G. Baskar for the Appellant. Ms. Hema Muralikrishnan, Standing Counsel for the Respondent.