Best judgment assessment in a works contract dispute set aside and remitted for fresh reconsideration.

Assessment against an unregistered dealer was completed by best judgment with penalty after failure to respond to the pre-assessment notice. The writ petition challenged the assessments on the basis that the contract was a works contract and that statutory deductions had not been granted, while a medical certificate was relied on to explain delay in filing the appeal. In the interest of justice, both the assessment orders and the Tribunal's order were set aside, and the matter was remitted for fresh assessment. The assessee was directed to appear before the assessing officer with the contract documents, books of account and supporting materials, so the assessment could be reconsidered in accordance with law.

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Issues: Whether the assessment orders and the order of the Taxation Special Tribunal rejecting the petitions ought to be set aside and the matter remitted for fresh assessment, having regard to the plea that the contract was a works contract requiring statutory deductions and the explanation offered for delay.

Analysis: The assessment was made against an unregistered dealer by best judgment, with penalty, after the assessee failed to respond to the pre-assessment notice. In the writ proceedings, reliance was placed on the nature of the contract as a works contract and on the claim that deductions under section 3B had not been granted. The medical certificate produced in support of the explanation for the delayed appeal was also taken into account. In the interest of justice, the Court considered it appropriate to set aside both the assessment orders and the Tribunal's order and to direct the assessee to appear before the assessing officer with the contract documents, books of account and supporting materials so that the assessment could be reconsidered in accordance with law.

Conclusion: The assessment orders and the Tribunal's order were set aside and the matter was remitted to the assessing officer for fresh proceedings, subject to the assessee's appearance and cooperation.

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