Force majeure in tax assessment records justified waiver of the assessment procedure and remand for completion after hearing.

An administrative rejection of waiver of the assessment procedure was held unsustainable where the assessee's records were lost in an undisputed fire accident, returns had been filed, and tax had been paid. The court found no material to support allegations of suppression or deliberate non-production of documents, and held that the loss of records had to be treated as force majeure. It also noted that the assessment had remained pending for years and that the statutory framework required the Assessing Officer to call for records and complete the assessment. The matter was remanded with directions to waive the assessment procedure, complete the assessments, and grant personal hearing.

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Issues: Whether the order rejecting the request to waive the assessment procedure and the consequent assessment process could be sustained when the records were lost in a fire accident and the assessee had filed returns and paid tax.

Analysis: The impugned order rested on alleged suppression, non-production of records, and the view that the earlier relief granted in another case was inapplicable. The record did not support a finding of suppression, since the notices only alleged non-production of documents. The fire accident was not disputed, and in the absence of any material to show deliberate or motivated loss, the event had to be treated as a force majeure situation. The proceedings had remained pending for years, and the assessee could not be treated as solely responsible where the statutory process required the Assessing Officer to call for records and complete the assessment. The rejection was therefore based on irrelevant considerations and ignored relevant ones.

Conclusion: The rejection of waiver was unsustainable and was set aside. The matter was remanded with a direction to waive the assessment procedure and complete the assessments after granting personal hearing.

Ratio Decidendi: An administrative order declining waiver of assessment procedure is liable to be interfered with where it is founded on unsupported allegations and ignores undisputed force majeure circumstances and the statutory assessment framework.

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