Reassessment upheld where assessee failed to produce basic records and could not demand cross-checks or seller affidavits

Reassessment under the Tamil Nadu General Sales Tax Act was upheld where the assessee was given notice and repeated opportunities to produce books and supporting records, but failed to furnish the basic material needed for verification. The Court held that, in those circumstances, the assessee could not insist on summons, cross-check references, or affidavits from sellers to prove tax sufferance on purchases. It further found that the assessing officer had substantially complied with the appellate remand directions to recheck accounts, correlate transactions with records, and afford a hearing. The writ petitions challenging the reassessment orders were therefore dismissed.

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Issues: Whether the reassessment orders were liable to be set aside for alleged non-compliance with the appellate remand directions and for not issuing cross-check references or obtaining affidavits from sellers to establish tax sufferance on purchases.

Analysis: The writ petitions arose from assessments under the Tamil Nadu General Sales Tax Act, 1959 for two assessment years, after the assessment orders had earlier been set aside and the matters remanded. The appellate authority had directed the assessing officer to recheck the available accounts, correlate the transactions with the records and give an opportunity of hearing. The record showed that notices were issued, opportunities were granted and the assessee was called upon to produce the books of account and supporting material, but the necessary records were not produced despite repeated opportunities. The Court held that the assessee could not complain of failure to issue summons or cross-check references when it had not furnished the basic materials required for verification. It further held that the assessing officer had not over-reached the remand directions and that the assessment process had substantially complied with the appellate authority's instructions and the requirements of fair procedure.

Conclusion: The challenge to the assessment orders failed; the reassessment orders were upheld and the writ petitions were dismissed.

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