Taxable turnover apportionment without statutory basis set aside; fresh assessment ordered after hearing and supporting documents.

An assessment based on 40% of the petitioner's total turnover attributed to Bihar lacked any disclosed statutory basis, so the taxable turnover computation was unsustainable. The rectification proceedings could not cure that foundational defect because they did not address the absence of legal authority for the original apportionment method. The assessment order and the consequential rectification order were therefore set aside, and the matter was remanded to the Assessing Officer for fresh consideration after the petitioner's appearance with supporting documents and an opportunity of hearing.

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Issues: Whether the assessment order computing tax on 40% of the petitioner's total turnover attributable to Bihar, and the consequential rectification order, could be sustained.

Analysis: The assessment records disclosed no statutory basis for determining the taxable turnover in Bihar by taking 40% of the petitioner's overall turnover. The rectification proceedings could not cure that foundational defect. As the assessment itself was unsustainable, both the assessment order and the rectification order were liable to be set aside. The matter was remitted to the Assessing Officer for reconsideration after the petitioner's appearance with supporting documents and after affording an opportunity of hearing.

Conclusion: The assessment order and the rectification order were set aside and the matter was remanded for fresh assessment after hearing the petitioner.

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