Natural justice and verification failures led to remand for fresh assessment after improper reliance on copies of Forms 8 and 9

Assessment, rectification and revisional orders based on xerox copies of Forms 8 and 9, without verification of the original departmental records and without giving a reasonable opportunity to substantiate the claim, were held unsustainable. The decision-making process was found inconsistent with the procedure prescribed under the Act and Rules and contrary to natural justice. The matter was remitted to the assessing officer for fresh consideration in accordance with law after affording both parties a reasonable opportunity.

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Issues: Whether the assessment, rectification and revisional orders could be sustained when the authorities acted on xerox copies of Forms 8 and 9 without proper verification and without affording reasonable opportunity, and whether the matter required remand for fresh consideration.

Analysis: The assessment and subsequent orders were passed without proper verification of the original Forms 8 and 9 in the departmental records and without ensuring compliance with the procedure prescribed under the Act and Rules. The record also showed absence of adequate opportunity to substantiate the claim before the assessing authority. In these circumstances, the decision-making process was found to be inconsistent with the statutory procedure and contrary to the principles of natural justice.

Conclusion: The impugned orders could not be sustained and the matter was required to be remitted to the assessing officer for fresh decision in accordance with law after giving both parties a reasonable opportunity.

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