Assessing Officer's Independence Emphasized in Reassessment Proceedings

The court upheld the petitioners' argument challenging proceedings based on higher authorities' proposals, emphasizing the Assessing Officer's duty to independently assess. Following Circular No.3, impugned proceedings were set aside, remanded for reassessment, with specific guidelines for objections filing and assessment timelines. The judgment allowed the Writ Petitions, emphasizing the Assessing Officer's independence and adherence to legal principles in reassessment proceedings, with matters closed without costs.

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Issues Involved:
Common issue of Assessing Officer's independence in dealing with impugned proceedings based on Audit Reports/Inspection Proposals from higher authorities.

Analysis:
The judgment addresses the common issue in all Writ Petitions where petitioners challenge proceedings based on Enforcement Wing or ISIC Authorities' proposals. Petitioners argue that Assessing Officer, a Quasi Judicial Authority, did not independently consider the proposals but relied on higher authorities. The Court upholds petitioners' argument, citing previous decisions like Madras Granites (P) Ltd. and Narasus Roller Flour Mills cases. The Court emphasizes the Assessing Officer's duty to independently assess proposals. In response, the Commissioner of State Tax issued Circular No.3 in 2019, allowing Assessing Officers to deviate from proposals without higher authority approval.

The judgment notes that petitioners paid 10% of tax demand per interim orders. Following Circular No.3, the impugned proceedings based on Enforcement Wing/ISIC proposals are set aside. Matters are remanded to Assessing Officer for reassessment. Assessees have 30 days to file objections with supporting documents. The Assessing Officer must provide a personal hearing, possibly through Video Conferencing, and conclude assessment within 12 weeks of receiving objections. If no objections are received within 30 days, assessment proceedings begin after the deadline.

In conclusion, the Writ Petitions are allowed based on the Circular empowering Assessing Officers' independence. The judgment provides detailed directions for reassessment proceedings, emphasizing fairness and adherence to legal principles. The Miscellaneous Petitions are closed without costs.

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