Independent assessment by the Assessing Officer is required; audit proposals alone cannot sustain proceedings.

Assessment proceedings cannot be sustained where the Assessing Officer relies only on audit reports or inspection proposals from the Enforcement Wing or ISIC authorities without independent application of mind. The Assessing Officer, as a quasi-judicial authority, must examine the material independently and may deviate from such proposals by recording reasons. The document also notes that Circular No. 3 dated 18.01.2019 recognises this independent authority. On this basis, the impugned proceedings were set aside and the matter was remanded for fresh consideration after receiving objections and granting an opportunity of hearing.

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Issues: Whether assessment proceedings founded solely on audit reports or inspection proposals of the Enforcement Wing or ISIC authorities, without independent consideration by the Assessing Officer, could be sustained.

Analysis: The Assessing Officer, being a quasi-judicial authority, must independently examine the material and cannot be guided only by the proposals of the Enforcement Wing or ISIC authorities. The Court noted its earlier consistent view that such proposals cannot substitute independent decision-making. It further relied on Circular No. 3 dated 18.01.2019, which empowers the Assessing Authority to deviate from such proposals and finalize the assessment on its own, with reasons recorded.

Conclusion: The impugned proceedings could not stand and were set aside. The matters were remanded to the Assessing Officer for fresh consideration after receiving objections and granting opportunity of hearing.

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