Suo motu revision fails when undisclosed material is used against the assessee without a fair chance to rebut it

A suo motu revisional assessment order cannot be sustained where the material relied on to initiate revision is not disclosed to the assessee. The authority relied on an alleged declaration, but it was neither annexed to the notice nor produced before the HC, and no departmental reply was filed. As the assessee was denied an effective opportunity to meet the basis of revision, the Court held that the order was inconsistent with fair procedure and set it aside. Fresh proceedings were left open to the revisional authority, subject to due opportunity to the assessee.

---

---

Issues: Whether the suo motu revisional order of assessment could be sustained when the declaration relied upon for initiating revision was not furnished to the assessee, not annexed to the notice, and not produced before the Court, thereby depriving the assessee of an effective opportunity to rebut it.

Analysis: The reassessment had already proceeded on the basis of material in the assessment record. For the exercise of suo motu revisional power, the authority relied on an alleged declaration said to have been made by the assessee. That declaration was neither supplied with the notice nor produced in Court, and no reply was filed by the department. In these circumstances, the assessee had no opportunity to meet the material forming the basis of revision. A revisional order founded on disputed material, without disclosure of the same to the affected party, cannot be sustained consistently with fair procedure.

Conclusion: The revisional order was unsustainable and was set aside. Fresh proceedings were left open to the revisional authority after due opportunity to the assessee.

---