Premature tax assessment cannot deny exemption before expiry of statutory time to file declaration forms

Assessment was premature because the statutory period under section 12C to produce declaration forms and certificates for exemption or concessional tax treatment had not expired when the order was passed. The High Court held that denial of exemption and related additions could not be sustained on that basis, especially since the assessee's contention on the extended time was not controverted. The assessment order was set aside, and the assessee was directed to produce the required documents for consideration in a fresh assessment after examining the materials and objections.

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Issues: Whether the assessment order could stand when the assessee still had the statutory time under section 12C to produce declaration forms and certificates for exemption or concessional rate of tax.

Analysis: The assessment was made before the expiry of the time extended by section 12C of the Tamil Nadu General Sales Tax Act, 1959, which allowed production of the prescribed declaration forms and certificates up to 31 March 2007. Since the impugned assessment dated 12 January 2007 was passed before that period expired, the denial of exemption and related additions could not be sustained. The respondent did not controvert the assessee's contention.

Conclusion: The assessment order was unsustainable and was set aside. The assessee was directed to produce the necessary documents, and the respondent was directed to pass a fresh assessment after considering the materials and objections.

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