Independent assessment by tax authorities required; reliance on enforcement proposals alone cannot sustain the proceeding.

An assessment based solely on audit reports or inspection proposals from the Enforcement Wing or ISIC authorities was treated as unsustainable where the Assessing Officer had not independently applied mind. The text reiterates that the Assessing Officer acts as a quasi-judicial authority and must make an independent assessment rather than merely follow superior proposals. It also notes Circular No. 3 dated 18.01.2019, which permits the Assessing Authority to depart from such proposals and finalise the assessment independently by recording reasons. On that basis, the impugned proceeding was set aside and the matter remanded for fresh consideration in accordance with law.

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Issues: Whether an assessment proceeding based on audit report or inspection proposal from the Enforcement Wing or ISIC authorities could be sustained when the Assessing Officer had not independently applied mind, and whether the subsequent circular permitted independent finalisation of assessment.

Analysis: The impugned proceeding proceeded on the basis of reports and proposals forwarded by the Enforcement Wing or ISIC authorities. The Assessing Officer, being a quasi-judicial authority, was required to independently consider the matter and could not act merely on the higher ' proposals. The existing judicial view on independent decision-making was reiterated, and Circular No. 3 dated 18.01.2019 was noticed as empowering the Assessing Authority to deviate from such proposals and finalise the assessment independently by recording reasons.

Conclusion: The impugned proceeding was set aside and the matter was remanded to the Assessing Officer for fresh consideration in accordance with law and without being influenced by the Enforcement Wing or ISIC proposals.

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