Unconsidered return and undisclosed inspection report vitiate assessment when adverse material is used without disclosure.

An assessment order was held unsustainable because the assessee's return and sales statement filed on the same day were not considered, while an Inspector's report estimating monthly sales was relied on without supplying a copy to the assessee. Using material behind the assessee's back, together with failure to consider relevant filings already made, vitiated the assessment. The order was set aside and the matter required fresh decision after giving the assessee adequate opportunity.

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Issues: Whether the assessment order was sustainable when the return and sales statement filed by the assessee on the date of the order were not considered and when the Inspector's report, relied upon for estimation, was used without furnishing a copy to the assessee.

Analysis: The assessee had filed the relevant return and sales statement on the same day the assessment order was passed. The assessing authority did not take those filings into account and instead relied on an Inspector's report estimating monthly sales. As no copy of that report had been supplied to the assessee, the material was used behind the assessee's back. The combined effect of ignoring the filed return and relying on undisclosed material vitiated the assessment.

Conclusion: The assessment order was unsustainable and was liable to be set aside, with a fresh decision required after giving the assessee adequate opportunity.

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