Form C assessment and penalty cannot rest only on missing proof of original filing when duplicate forms are available for verification.

Assessment on sales against Form C could not be sustained merely because the assessee did not produce proof of filing the original C-forms, where duplicate C-forms had been filed and their genuineness was to be verified. The revenue accepted that the duplicates were before the assessing officer, and the matter required reconsideration on merits after examination of those forms and after giving the assessee an opportunity of hearing. The corresponding penalty also could not stand on the same basis and was set aside for fresh consideration.

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Issues: Whether the assessment relating to sales against Form C and the corresponding penalty could be sustained when the assessee had produced duplicate C-forms, though proof of filing the originals was not available.

Analysis: The assessment on this issue was made solely on the ground that acknowledgment for filing the original C-forms before the earlier assessing authority was not produced. The duplicate C-forms were not disputed as having been filed before the assessing officer, and the revenue also accepted that those duplicates would be verified for genuineness. In such circumstances, the issue required reconsideration on merits after examining the duplicate forms and after giving the assessee an opportunity of hearing.

Conclusion: The assessment on sales against Form C and the corresponding penalty could not stand and had to be reconsidered by the assessing officer.

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