Assessing officer's failure to provide records violated natural justice principles, leading to quashed assessment order

The High Court found that the assessing officer's failure to provide copies of D7 records to the petitioner violated natural justice principles, impeding the petitioner's ability to respond effectively to the pre-assessment notice. Emphasizing the necessity for access to relevant documents for assessment and tax liability, the court quashed the assessment order for the year 2001-2002 under the Tamil Nadu General Sales Tax Act, 1959. The writ petition was allowed, remanding the matter for reassessment by the Commercial Tax Officer with instructions to adhere to natural justice principles, with no costs awarded.

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Issues:
Violation of principles of natural justice in assessment process.

Analysis:
The writ petition sought to quash an order made by the first respondent as illegal and arbitrary, directing the second respondent to provide D7 records seized from the petitioner's premises and the annexures to the pre-assessment notice. The petitioner's contention was that the assessing officer did not furnish the copies of D7 records, leading to a violation of natural justice principles. The Special Tribunal upheld the assessing officer's decision, stating that the opportunity granted by the Enforcement Wing Officer to peruse the records was sufficient. However, the High Court found that the enforcement wing and assessment wing are distinct, emphasizing that the assessing officer should have provided copies of the documents for the petitioner to respond effectively to the pre-assessment notice.

The High Court held that the failure to furnish copies of the D7 records by the assessing officer impeded the petitioner's ability to provide a comprehensive reply to the pre-assessment notice, thereby violating the principles of natural justice. It was emphasized that the petitioner's assessment and liability to pay tax necessitated access to the relevant documents. The court rejected the Special Tribunal's view that furnishing copies of relied-upon documents was unnecessary, highlighting the assessing officer's duty to provide such copies after collecting fees from the assessee. Consequently, the order of assessment for the year 2001-2002 under the Tamil Nadu General Sales Tax Act, 1959 was deemed to be made in violation of natural justice principles and was quashed.

In conclusion, the High Court allowed the writ petition, remitting the matter back to the Commercial Tax Officer for reassessment while directing compliance with natural justice principles. No costs were awarded in the matter, and the related petition was closed.

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