Natural justice requires supply of relied upon documents, subject to prior verification of the assessee's books and records.

A noticee is entitled to inspect or receive copies of documents seized and relied upon by the revenue so it can answer a show cause notice effectively. The text applies natural justice principles in quasi-judicial proceedings, recognising that adverse civil consequences require disclosure of relied upon material. It also notes the concern that returned seized records may be altered, and adopts a balanced approach by making supply of copies conditional on prior production and verification of the assessee's books of account and related records.

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Issues: Whether the assessee was entitled to copies of the documents seized during survey and relied upon by the revenue so as to enable an effective reply to the show cause notice.

Analysis: The seized material formed the basis of the prima facie proceedings against the assessee, and a noticee must know the documents relied upon in order to meet the case against it. The principles of natural justice require supply of relied upon material or at least inspection thereof, particularly where the authority acts in a quasi-judicial capacity and adverse civil consequences may follow. At the same time, the apprehension of possible manipulation in the books of account after return of the seized material was also taken into account, and an equitable course was fashioned by requiring prior production and verification of the assessee's books before supply of copies.

Conclusion: The assessee was held entitled to copies of the documents relied upon by the revenue, subject to first producing its books of account and related records for verification.

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