Reassessment opportunity and remand: Madras HC set aside revised tax orders for fresh adjudication after allowing document production.

The Madras HC found that the assessee had not been given an effective opportunity to produce supporting documents before reassessment, and treated the explanation for non-compliance as reasonable because the matter had been handled by an accountant who faced serious health issues and Covid-related hospitalization. On that basis, the Court held that one further opportunity should be granted, and set aside the revised assessment orders as well as the dismissal of the writ petitions. The matters were remanded to the assessing authority for fresh adjudication after affording the assessee an opportunity to file documents and be heard.

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Issues: Whether the revised assessment orders deserved interference and remand on the ground that the appellant was not given an effective opportunity to produce supporting documents before reassessment.

Analysis: The assessments were made after notices under the Tamil Nadu Value Added Tax Act, 2006, but the appellant did not file a reply or supporting documents at the reassessment stage. The explanation offered was that the matter had been entrusted to the accountant, who was unable to comply because of serious health issues and Covid-related hospitalization. The Court found the explanation reasonable and considered that one more opportunity should be granted to substantiate the claim. In the interests of justice, the Court held that the matters should go back to the assessing authority for fresh consideration after affording an opportunity to produce the necessary material and be heard.

Conclusion: The revised assessment orders and the order of dismissal in the writ petitions were set aside, and the matters were remanded to the assessing authority for fresh adjudication after giving the appellant an opportunity to produce documents.

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