Trader Wins Challenge: Tax Assessment Overturned for Improper Evaluation of Submitted Documents and Returns The HC quashed assessment orders issued against a provision store trader on best judgment basis. The court found the orders improperly disregarded filed ...
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Trader Wins Challenge: Tax Assessment Overturned for Improper Evaluation of Submitted Documents and Returns
The HC quashed assessment orders issued against a provision store trader on best judgment basis. The court found the orders improperly disregarded filed returns and submitted documents. The HC directed a fresh assessment, mandating the assessing officer to consider all relevant materials and provide a reasonable opportunity to the petitioner, with a three-month timeline to issue a reasoned order.
Issues involved: Challenge to assessment orders based on best judgment basis and disregarding filed returns and documents.
Summary: In the present case, the petitioner, who runs a provision store, challenged assessment orders issued for distinct assessment periods. The petitioner trades in various products and was subjected to a surprise inspection leading to a recorded statement, which the petitioner claimed was coerced. The impugned orders were issued despite the petitioner filing returns periodically as required by GST enactments.
The petitioner's counsel challenged the orders on two grounds. Firstly, that the assessment was done on a best judgment basis despite regular filing of returns. Secondly, the petitioner's submitted documents were disregarded in the assessment process. The respondent, through the Additional Government Pleader, stated that the petitioner admitted liability during the inspection.
The assessment orders acknowledged that the petitioner filed returns regularly without default and enclosed multiple documents with the replies. However, the orders primarily relied on the statement recorded during the inspection to confirm tax demand and penalty, disregarding the returns, reply, and documents provided by the petitioner.
Consequently, the Court quashed the impugned orders and remanded the matters for re-consideration. The assessing officer was directed to provide a reasonable opportunity to the petitioner, conduct a fresh assessment taking into account all relevant materials, and issue a reasoned assessment order within three months from the date of the Court's order. The cases were disposed of with no costs incurred.
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