Rectification after reassessment requires verification of books of account before rejecting the request.

Reassessment under the Karnataka Value Added Tax Act was challenged because the endorsement rejecting rectification and the reassessment order were passed without examining the books of account. The High Court noted that, although the assessee had not produced the books when first called upon, the authority had proceeded without verifying the material relevant to the rectification request. The appropriate course was to allow the assessee to appear with its books and records so the application could be reconsidered on verification of the evidence. The endorsement was quashed and reconsideration was directed in accordance with law.

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Issues: Whether the endorsement refusing to entertain the rectification request and the reassessment order passed without verification of the books of accounts were liable to be quashed, and whether the assessee was entitled to an opportunity to produce its books and records for reconsideration of the rectification application.

Analysis: The reassessment proceedings were initiated under Section 39(1) of the Karnataka Value Added Tax Act, 2003. The assessee had not produced the books of accounts when called upon, but the impugned order and endorsement had been passed without examining the books. In those circumstances, the appropriate course was to afford the assessee an opportunity to appear before the authority with the books of accounts and other records so that the rectification request could be considered on verification of the material.

Conclusion: The endorsement was quashed and the assessee was permitted to appear with its books of accounts and records for consideration of the rectification application in accordance with law.

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