Court sets aside proceedings, directs independent assessment, gives Assessee 30 days to file objections

The Court set aside the proceedings based on proposals from higher authorities, directing the Assessing Officer to independently assess the case per Circular No.3. The Assessee was given 30 days to file objections with supporting documents, with the assessment to be concluded within 12 weeks. Failure to submit objections within 30 days would prompt the Assessing Officer to proceed with the assessment. The Writ Petition was allowed, and the connected Miscellaneous Petition was closed without costs.

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Issues involved:
1. Whether the Assessing Officer can solely rely on proposals from higher authorities without independent considerationRs.

Detailed Analysis:
The Writ Petition in question raised concerns regarding the Assessing Officer's reliance on Audit Reports/Inspection Proposals from the Enforcement Wing or ISIC Authorities without independent assessment. The petitioner contended that the Assessing Officer, as a Quasi Judicial Authority, failed to apply his mind and instead adopted the reports and proposals of higher authorities. This issue has been previously addressed by the court in various cases, emphasizing that the Assessing Officer must independently evaluate such reports and not be swayed by the proposals of superiors.

The Court referenced past judgments such as Madras Granites (P) Ltd. vs. Commercial Tax Officer and Narasus Roller Flour Mills vs. Commercial Tax Office, highlighting the principle that the Assessing Officer cannot be solely guided by proposals from Enforcement Wing Officers. Consequently, the Commissioner of State Tax, Chennai issued Circular No.3 dated 18.01.2019, empowering Assessing Authorities to deviate from such proposals without seeking approval from higher authorities. This Circular aimed to ensure that Assessing Officers could assess cases independently, without undue influence.

In light of Circular No.3, the Court set aside the impugned proceedings based on proposals/reports from the Enforcement Wing/ISIC Authorities in the present Writ Petition. The matter was remanded back to the Assessing Officer, granting the Assessee the liberty to file objections with supporting documents within 30 days. The Assessing Officer was directed to provide a personal hearing to the Assessee/Representative, if necessary through Video Conferencing, and to conclude the assessment independently within 12 weeks from the receipt of objections. If objections were not received within 30 days, the Assessing Officer was instructed to commence assessment proceedings thereafter.

The Court allowed the Writ Petition, with the direction for independent assessment by the Assessing Officer as per Circular No.3. The connected Miscellaneous Petition was closed without costs.

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