Turnover mismatch reassessment must consider revised returns and circular instructions before final assessment; de novo assessment directed.

Where reassessment concerns turnover mismatch and input tax credit, the assessing authority must consider revised returns and the governing circular instructions before finalising the assessment. The Court found that the mismatch dispute, the earlier opportunity to furnish objections, and the delay in framing reassessment did not justify ignoring the revised returns. It therefore set aside the impugned orders and directed a de novo assessment in accordance with law, with due regard to the revised returns and the departmental circular governing mismatch cases.

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Issues: Whether the impugned reassessment orders relating to turnover mismatch and input tax credit should be set aside and the matter remanded for fresh consideration of the revised returns and the departmental circular governing mismatch cases.

Analysis: The petitioner had earlier been given an opportunity to furnish particulars and additional objections, but the reassessment was still framed after considerable delay. The dispute centred on mismatch between the turnover reflected in the petitioner's revised returns and the data stated to be available from the selling and purchasing dealers. The revised returns had to be considered in the light of the earlier directions of the Court and the departmental circular that required mismatch cases to be kept alive and dealt with pending evolution of a central mechanism. In these circumstances, a fresh assessment was considered appropriate, with due regard to the revised returns filed by the petitioner and the circular instructions issued by the Commissioner.

Conclusion: The impugned orders were set aside and the Assessing Officer was directed to redo the assessments de novo in accordance with law, taking note of the revised returns and the relevant circular.

Ratio Decidendi: Where reassessment involves turnover mismatch and revised returns have been filed, the assessing authority must consider those returns and the governing administrative instructions before finalising the assessment; failure to do so justifies remand for de novo assessment.

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