Late production of declaration forms and refusal of further adjournment were upheld where no reasonable cause or procedural unfairness was shown.

Documentary evidence not produced before the assessing authority cannot ordinarily be entertained at the revisional stage without a satisfactory explanation for the earlier default, and the refusal to accept such declaration forms was not shown to be perverse. Repeated adjournments had already been granted, and where the request for further time was only verbal, made as the assessment approached limitation, and no specific further prayer to produce books or declarations was made, refusal of adjournment did not amount to denial of a reasonable opportunity of hearing. The reference was therefore answered against the assessee on both substantive questions.

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Issues: (i) Whether declaration forms not produced at the assessment stage could be refused consideration at the revisional stage. (ii) Whether the assessee had been afforded reasonable opportunity of being heard before the best judgment assessment and refusal of adjournment.

Issue (i): Whether declaration forms not produced at the assessment stage could be refused consideration at the revisional stage.

Analysis: The statutory declaration forms had not been produced before the assessing authority, and no convincing reason was shown for their non-production even up to the appellate stage. In such circumstances, evidence withheld at the assessment stage was not required to be entertained at the revisional stage in the absence of reasonable cause for the default. The refusal to accept the declarations at the revisional stage was not shown to be perverse.

Conclusion: The issue was answered in the affirmative and in favour of the Revenue.

Issue (ii): Whether the assessee had been afforded reasonable opportunity of being heard before the best judgment assessment and refusal of adjournment.

Analysis: The record showed that several adjournments had already been granted, including adjournments taken suo motu, and the request made on the date of hearing was only a verbal prayer. The refusal of further adjournment was made in the background of the assessment nearing limitation, and no further specific prayer for time to produce books of account and declarations was made. The finding that the assessee was not denied a reasonable opportunity was not perverse.

Conclusion: The issue was answered in the affirmative and in favour of the Revenue.

Final Conclusion: The reference was answered against the assessee on the substantive questions decided, and the proceedings were finally concluded without costs.

Ratio Decidendi: Documentary evidence not produced before the assessing authority cannot ordinarily be introduced at the revisional stage without a satisfactory explanation for the earlier default, and refusal of further adjournment after repeated opportunities is not perverse where reasonable opportunity has otherwise been afforded.

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