Fair opportunity in assessment proceedings requires consideration of reported transactions and supporting material before rejecting a claim.

An assessment based mainly on non-production of original tax invoices was held unsustainable where the purchaser and selling dealers had reported the transactions, no suppression of sales or purchases was found, and the assessee had not been given an effective opportunity to explain the material. The Court noted that the reply and relevant circumstances were not properly considered, including that the alleged defect arose in a transaction within the same tax circle. The assessment was quashed and the matter remanded for fresh consideration with a sufficient opportunity and personal hearing.

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Issues: Whether the assessment order rejecting the claim was sustainable when the purchaser and the selling dealers had reported the transactions, no suppression was found, and the assessee was denied effective opportunity and personal hearing.

Analysis: The transactions were admitted to have been reported by both the purchaser and the end sellers, and there was no suppression of sales or purchases. The assessment was founded mainly on non-production of original tax invoices, even though no request had been made to produce the invoices or supporting documents. The order also failed to properly consider the assessee's reply and the fact that the alleged defect related to a transaction within the same tax circle. In these circumstances, the denial of opportunity and non-consideration of relevant material rendered the assessment vulnerable.

Conclusion: The assessment order could not be sustained and was quashed; the matter was remanded for fresh consideration after granting the assessee a sufficient opportunity and personal hearing.

Ratio Decidendi: Where transactions are duly reported, no suppression is shown, and the assessee is denied a fair opportunity, an assessment based merely on non-production of invoices cannot stand and must be reconsidered afresh.

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