Taxability of Bar Council receipts remitted for fresh assessment after notice and full factual enquiry

Assessment orders treating the Bar Council as a dealer could not be sustained because the earlier remand directions were not properly followed and the record lacked a fresh notice, clear materials, and adequate factual particulars on the activities, receipts, and alleged sales. In the absence of a proper factual foundation, the Court declined to decide taxability on merits and held that the assessee must first place full particulars before the assessing officer. The orders were set aside and the matter was remitted for fresh assessment and reconsideration in accordance with law after notice and full enquiry.

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Issues: Whether the impugned assessment orders treating the Bar Council as a dealer and bringing its receipts to tax could be sustained, or whether they were liable to be set aside and remitted for fresh assessment.

Analysis: The assessment records did not show that the assessing authority had complied with the earlier remand directions to issue a fresh notice and identify the materials on which the revenue formed the view that the petitioner's activities amounted to a taxable business activity. The writ petitions and the counter materials did not place adequate factual particulars regarding the petitioner's activities, the nature of the receipts, or the specific transactions said to amount to sales. In the absence of a proper factual foundation, the Court found it inappropriate to decide the taxability issue on merits and considered it necessary that the assessee be required to place full particulars before the assessing officer, who should then examine the matter afresh in accordance with law.

Conclusion: The impugned assessment orders were set aside and the matter was remitted for fresh reconsideration after notice and full factual enquiry; the challenge succeeded in favour of the petitioner.

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