Fair opportunity in reassessment requires access to third-party material, time to respond, and cross-examination where permitted.

Where reassessment is founded on third-party material, the assessee must be given a fair and reasonable opportunity to inspect the documents, seek adequate time, file effective objections and, where legally permissible, request cross-examination before the proceedings are concluded. Denial of a meaningful opportunity to respond to late-supplied material can amount to procedural unfairness affecting the reassessment. On the facts described, the reassessment orders were quashed and the matter restored for reconsideration with opportunity to file detailed objections and seek cross-examination if permitted in law.

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Issues: Whether the reassessment orders under the Karnataka Value Added Tax Act, 2003 were liable to be quashed for denial of a fair and complete opportunity, and the proceedings restored for reconsideration.

Analysis: The reassessment was based on third-party material and the petitioner sought copies of the relevant documents, further time to respond, and an opportunity to seek cross-examination. The record showed that the petitioner had been given copies of documents shortly before completion of the reassessment and had sought additional time within the period allowed. In these circumstances, the request for further time ought to have been considered reasonably before concluding the proceedings. The denial of a meaningful opportunity to file detailed objections and seek cross-examination, if permissible in law, amounted to a procedural unfairness affecting the reassessment.

Conclusion: The impugned reassessment orders were liable to be quashed and the proceedings restored to the respondent for reconsideration with opportunity to file detailed objections and to seek cross-examination, if permitted in law. The issue was decided in favour of the assessee.

Ratio Decidendi: Where reassessment is founded on third-party material, the assessee must be afforded a fair and reasonable opportunity to inspect the material, file effective objections, and seek cross-examination where legally permissible before the proceedings are concluded.

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