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TMI Blog2019 (5) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 - KARNATAKA HIGH COURT] it is held that for a notice to be valid in law, should be clear and precise so as to give the party concerned adequate information of the case he has to meet. The adequacy of notice is a relative term and must be decided with reference to each case. The test of adequacy of notice will be whether it gives sufficient information so as to enable the person concerned to put up an effective defence. If a notice is vague or it contains unspecified or unintelligible allegations, it would imply a denial of proper opportunity of being heard. Natural Justice is not only a requirement of proper legal procedure but also a vital element of good administration. On a careful perusal of the notice issued by the Income Tax Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t gave its reply through Chartered Accountant on 11.12.2017. The authorities passed an order dated 21.12.2017 withdrawing the approval granted under Section 10(23C)(vi) of the Act, by the Chief Commissioner of Income Tax, Hubli, with effect from assessment year 2010-11 onwards. The said order is challenged in the instant writ petitions. The Hon'ble Single Judge has dismissed the writ petitions. Hence these writ appeals. 4. Sri S.S. Naganand, learned Senior Counsel appearing for the appellants argued that a show cause notice has to contain details of the allegations made against the noticee in order to effectively answer the notice. Adverting to the notice he pointed out that except stating that there was a raid on 16.12.2015 and documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g accommodation entries, purchase of personal assets etc, in contravention to the provisions of Section 10(23C) (vi), 11 and 13(1) (c) of the Income-tax Act, 1961. 3. You are requested to show cause as to why the approval u/s 10 (23C) (vi) of the IT Act should not be withdrawn for violating the provisions of Section 10(23C) (vi) of the IT Act. You are hereby given an opportunity of being heard and your case is posted for hearing on 6.12.2017 at 12.00 PM. You may appear before the Director General of Income-tax (Inv.), Bengaluru at the above address for the hearing along with your explanations and documentary evidences or may send your written submissions on or before the date of hearing. 3. In case of failure to utilize this opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meet the grounds on which an action is proposed. To put it otherwise, we are of the opinion that in order to fulfil the requirements of principles of natural justice, a show cause notice should meet the following two requirements viz: i) The material/ grounds to be stated on which according to the Department necessitates an action; ii) Particular penalty/action which is proposed to be taken. It is this second requirement which the High Court has failed to omit. We may hasten to add that even if it is not specifically mentioned in the show cause notice but it can be clearly and safely be discerned from the reading thereof, that would be sufficient to meet this requirement." (emphasis supplied) 9. In MR.S.N. SINHA Vs. THE STATE OF KARN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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