Fair inquiry in revision proceedings requires disclosure of relied-on records, cross-examination, summons, and a personal hearing.

A fair revision inquiry requires disclosure of the materials relied on by the department and a real opportunity to test them. Where the assessee disputed alleged purchases and said he lacked access to the old records and did not know the supposed sellers, the Court held that the assessee was entitled to the relied-on records, issuance of summons to the third-party sellers, cross-examination of those witnesses, and a personal hearing before finalisation. The Court also recognised the need for a detailed inquiry and for the assessee to file final objections before the final order is passed.

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Issues: Whether the assessee was entitled, before finalisation of the revision proceedings, to be furnished with the records relied on by the department, to have summons issued to the third parties said to have sold the goods, to cross-examine those third parties, and to be given a personal hearing.

Analysis: The dispute concerned alleged purchases said to have been made during the period when the assessee's mother was carrying on the business, and the assessee asserted that he had no access to the old records and did not know the alleged sellers. The Court noted that the prayer was limited to enabling verification of the materials relied on by the department and to testing their truth through examination of the relevant third parties. Referring to the statutory power to summon and examine persons and compel production of documents, the Court held that no prejudice would be caused to the department by granting such an opportunity and that a fair inquiry required disclosure of the materials and the chance to test them.

Conclusion: The assessee was entitled to the records, summons to the third parties, cross-examination, a detailed inquiry, filing of final objections, and a personal hearing before the final order was passed.

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