Best judgment assessments set aside for doubtful notice service and remitted for fresh tax determination after hearing

Best judgment assessments for 2007-08 to 2011-12 were set aside because service of notices was doubtful and the taxpayer had been pursuing departmental relief, albeit before the wrong forum. The HC held that, in these circumstances, the assessments could not be sustained without a proper opportunity of hearing. The matters were remanded to the Assessing Authority for fresh determination of tax liability after due notice and opportunity to the taxpayer.

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Issues: Whether the best judgment assessments for the assessment periods 2007-08 to 2011-12 were liable to be set aside and the matter remanded for fresh assessment after due notice and opportunity.

Analysis: The assessment orders had been passed on a best judgment basis after non-response to notices, but the record also indicated that the petitioner had been pursuing relief before the departmental authorities, though before the wrong forum. The Court took note of the doubt surrounding service of notices and held that, in the circumstances, the assessments should not be sustained without affording the petitioner a proper opportunity. The Court therefore directed fresh determination of tax liability by the Assessing Authority.

Conclusion: The assessment orders were set aside and the matters were remanded to the Assessing Authority for fresh consideration after due notice and opportunity to the petitioner.

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