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of HC invalidated ex-parte assessment order and demand notices that were solely based on a previously quashed FIR. The department failed to conduct independent investigation or provide concrete evidence of petitioner's alleged earnings during the relevant assessment year. The court emphasized that tax demands cannot be created merely on assumptions and presumptions, particularly when the foundational evidence (FIR) had been nullified through a compromise between parties. Assessment orders were set aside as the department failed to establish actual income through independent investigation or substantiating evidence, making the tax demand legally untenable.
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