Self-assessment demand requires verification of books before disputed turnover entries can be finally sustained.

A self-assessment demand under the Tamil Nadu Value Added Tax Act could not be sustained where disputed turnover entries in Form-WW were not verified against the books of account and the assessee had not been given an effective opportunity to clarify the discrepancy. The HC held that the proper course was to permit production and verification of the books before completing the assessment. The assessment order was set aside, and the matter was remitted for fresh consideration, with liberty to revive the assessment if the books were not produced within the time granted.

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Issues: Whether the impugned assessment order, arising out of a self-assessment under the Tamil Nadu Value Added Tax Act, 2006 and the audit report filed in Form-WW, could be sustained without verification of the books of account and a reasoned consideration of the entries in Part-B and Part-C.

Analysis: The assessment had been completed on self-assessment basis under Section 22(2) of the Tamil Nadu Value Added Tax Act, 2006. The dispute arose from the manner in which turnover was reflected in Form-WW in relation to the entries in Part-B and Part-C, with the petitioner asserting that the discrepancy was an inadvertent error by the auditor. Since the books of account had not been physically verified and the petitioner was prepared to produce them for verification, the assessment could not be finally sustained on the existing record. The proper course was to enable verification of the books and, if necessary, call for clarification before completing the assessment.

Conclusion: The impugned order was set aside and the matter was left open for verification of the books of account and reconsideration by the assessing authority. The petitioner was given an opportunity to produce the books, and the assessment would revive if the books were not produced within the time granted.

Final Conclusion: The writ petition succeeded to the extent of setting aside the assessment order and securing a fresh verification process, while preserving the respondent's right to proceed again if the petitioner failed to comply with the direction.

Ratio Decidendi: A self-assessment based demand cannot be sustained where the disputed turnover entries have not been verified from the books of account and the assessee is afforded no effective opportunity for clarification before reassessment.

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