Mismatch assessment transparency requires disclosure of relied-on material before finalisation, even without a central sharing mechanism.

Mismatch assessments must be conducted transparently, with the material relied on by the Department furnished to the assessee before finalisation so a meaningful response can be given. The absence of a centralised sharing mechanism does not prevent the assessing authority from independently collecting third-party details, collating the relevant data and supplying it to the assessee for reply before completing assessment. On the facts noted, the third-party dealer details were already available with the assessing authority, so the proceedings were not treated as awaiting any central mechanism; the notices were nevertheless held premature and the writ petitions were dismissed.

---

---

Issues: Whether the pre-assessment notices issued for the relevant assessment years were liable to be quashed as premature in view of the mismatch proceedings and the requirements laid down for sharing of material with the assessee.

Analysis: The writ petitions challenged pre-assessment notices on the ground that they violated the requirements governing mismatch assessments. The governing principle is that assessment based on mismatch must be conducted transparently, with the material relied upon by the Department being furnished to the assessee for response before finalisation of assessment. At the same time, the absence of a centralised sharing mechanism did not bar the assessing authority from independently collecting third-party details, collating the relevant data, supplying the material to the assessee, and completing the assessment in accordance with law. Since the third-party dealer details had already been collated and were available with the assessing authority, there was no reason to treat the proceedings as stalled awaiting the central mechanism.

Conclusion: The notices were held to be premature and the writ petitions were dismissed.

Ratio Decidendi: In mismatch assessment matters, the assessing authority may proceed without awaiting a central mechanism if the relevant third-party material is collated and supplied to the assessee for response before finalising the assessment.

---