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of <h1>Tribunal Order Set Aside for Failure to Provide S.I.B. Report</h1> The Court set aside the Tribunal's order and subsequent assessments due to failure to provide the revisionist with the S.I.B. report during assessment ... Rejection of books of accounts - Best judgment assessment - Assessment done on the basis of SIB report - Held that:- Law laid down by the Division Bench of this Court in Ms. Vehalana Steels and Alloys Pvt Limited Muzaffarnagar vs. State of U.P. And others [2008 (1) TMI 864 - ALLAHABAD HIGH COURT] providing a copy of the report of the SIB to the revisionist during the assessment proceedings was absolutely imperative in order to enable the revisionist to prepare his defence. Having not done so the assessment order itself stands vitiated. In the present case since the Tribunal has itself remitted the matter to the assessing authority for consideration on certain questions, the order of the Tribunal deserves to be set aside. Order of the Tribunal dated 26.6.2014 and the assessment order dated 02.01.2010 and the appellate order dated 10.8.2011 are hereby set-aside. The matter is remitted to the Assessing Authority with the direction that the assessing authority shall make a fresh assessment after providing a copy of the SIB report to the revisionist and after giving him an opportunity to submit his explanation to the same. - Decided in favour of assessee. Issues Involved:1. Best judgment assessment based on S.I.B. report2. Reduction in tax liability by appellate authority3. Questions raised before the Commercial Tax Tribunal4. Assessment based solely on S.I.B. report without providing a copy to the revisionist5. Legal implications of the Division Bench JudgmentBest Judgment Assessment based on S.I.B. Report:The revisionist filed returns accepted by the assessing authority, but a survey found discrepancies. The assessing authority assessed tax at Rs. 37,43,116 based on best judgment. The first appeal reduced tax liability by Rs. 13,43,000. The Tribunal remitted the matter to the assessing authority on issues related to Input Tax Credit (ITC) disallowance and 'manufacture' definition for food preparation.Reduction in Tax Liability by Appellate Authority:The appellate authority partially allowed the revisionist's appeal, reducing the tax liability. However, the revisionist contended non-confrontation with the survey report, impacting the assessment process.Questions Raised Before the Commercial Tax Tribunal:Multiple questions were raised before the Tribunal, including ITC disallowance, assessment authority's reliance on reports without confronting the revisionist, and the treatment of seized purchases as concealed.Assessment Based Solely on S.I.B. Report without Providing a Copy to the Revisionist:The Tribunal justified the best judgment assessment based on the S.I.B. report, despite the revisionist's submission of books of accounts during assessment proceedings. The Court emphasized the necessity of providing the S.I.B. report to enable the revisionist to prepare a defense, citing a Division Bench Judgment.Legal Implications of the Division Bench Judgment:Referring to a Division Bench Judgment, the Court emphasized the importance of providing the S.I.B. report to the revisionist during assessment proceedings. Failure to do so vitiates the assessment order. Consequently, the Tribunal's order, assessment, and appellate orders were set aside, remitting the matter to the Assessing Authority for a fresh assessment after providing the S.I.B. report to the revisionist.This detailed analysis highlights the key issues, legal arguments, and implications of the judgment, emphasizing the significance of procedural fairness and evidence consideration in tax assessments.
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