Assessment set aside for failure to consider documents, with fresh hearing and reconsideration ordered

An assessment founded on alleged non-production of documents was set aside because the dealer contended that relevant records were available but had not been properly considered and that a fair opportunity to produce them had not been granted. The matter was remitted for fresh adjudication on merits after the assessee is permitted to furnish the documents and is given a personal hearing. Once the assessment order was quashed, the rectification petition under section 84 no longer had independent survival. The dispute was therefore reopened for reconsideration by the assessing authority on the basis of the materials to be produced.

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Issues: Whether the assessment order passed without considering the documents produced by the dealer and without affording a proper opportunity of hearing was liable to be set aside and remitted for fresh consideration; and whether the petition under section 84 survived after such setting aside.

Analysis: The assessment was made on the basis of non-production of relevant documentary evidence at the material time. The dealer asserted that the necessary records were available and had not been taken into account, and that an opportunity to produce them had not been effectively granted. In these circumstances, the Court found it appropriate to permit the dealer to place the documents before the assessing authority and to require a fresh decision on merits after personal hearing. Once the assessment order itself was set aside, the rectification petition under section 84 of the Act ceased to have independent survival.

Conclusion: The impugned assessment order was set aside and the matter was remitted to the respondent for fresh orders after furnishing documents and granting personal hearing. The petitioner succeeded on the challenge to the assessment.

Final Conclusion: The dispute was reopened for reconsideration by the assessing authority, with the assessment to be redone on the basis of the materials now to be produced by the petitioner.

Ratio Decidendi: Where an assessment is founded on non-production of documents, and the assessee is granted an opportunity to produce the records, the order may be set aside and remitted for fresh adjudication after hearing.

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