Where the Income tax officer is proposing any addition of income in the case of any person in assessment / reassessment under different provisions of the Income tax Act, 1961 on which tax liability will arise, then before making such addition the Income tax Officer gives an opportunity to the person to show the reason why such addition should not be made to income of the person. It is to be noted that it is the last opportunity where the person can defend himself at lower levels, preferably through Authorized representative / Chartered Accountant on the date & time specified in the notice.
If this notice is not complied with then the Income tax Officer determines the Income of the person on the basis of documents available , then we need to go to the higher authorities which double the burden of the person. Sometimes, the initial notices / preliminary notices may get neglected / ignored / unattended, then also before making addition the Income tax Officer compulsorily issue show cause notice to the person. Thus this notice, must be attended by the person preferably through Authorized representative / Chartered Accountant otherwise it may escort to adverse consequences along with imposition / levy of harsh fines and penalties