Court quashes 2012-2013 assessment order, remands for fresh assessment, grants personal hearing.

The court allowed the writ petition, quashed the assessment order for the year 2012-2013, and remanded the matter to the first respondent for a fresh assessment. The court directed a detailed examination, providing the petitioner with a personal hearing opportunity. The first respondent was instructed to consider legal positions, review relevant documents, agreements, and sale deeds, and conduct the assessment in accordance with the law. No costs were awarded, and the connected miscellaneous petition was closed.

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Issues involved:
Challenge to assessment order for the year 2012-2013 on grounds of lack of personal hearing opportunity, levy of tax at 14.5% on entire turnover due to lack of break-up details, contention of slump sale of entire property with movables, consideration of legal position on sale of business as a whole.

Analysis:
The petitioner contested the assessment order for the year 2012-2013 issued by the first respondent, citing various grounds, including the absence of an opportunity for a personal hearing. The Enforcement Officers inspected the petitioner's business premises and noted the sale of a project to another company during the relevant year. The petitioner argued that the balance sheet indicated the sale of immovable property along with fixtures, emphasizing that their primary income source was building rental. They claimed to have sold the entire business as a slump sale, supported by a reference to a previous court decision. However, the first respondent proceeded with the assessment, concluding that the petitioner had sold movable properties along with immovable ones, thus liable for a 14.5% tax.

The petitioner maintained that the sale involved the entire property along with all movables as a slump sale, highlighting the omission of the sale of land and building in the assessment. They referred to a previous judgment on a similar issue involving the sale of businesses as a whole. The court referenced a Division Bench decision in a related matter, emphasizing the distinction between the sale of stock-in-trade and the sale of an entire business. The court also discussed cases where the sale of a business as a whole led to exemption from turnover tax, emphasizing the importance of considering the nature of the sale in its entirety.

The court concluded that the first respondent's order lacked detailed examination and failed to provide a personal hearing opportunity. Consequently, the court allowed the writ petition, quashed the impugned order, and remanded the matter to the first respondent for a fresh assessment. The first respondent was directed to consider the legal position, review all relevant documents, agreements, and sale deeds, and conduct the assessment in compliance with the law after affording the petitioner a personal hearing. No costs were awarded in this matter, and the connected miscellaneous petition was closed.

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