TaxTMI 
TaxTMI 
2007 (10) TMI 596
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....it petition, the petitioner has stated that although the search and seizure was illegal, there being pressure mounted by the respondents, it compounded the said case on payment of Rs. 1,000 and in addition, Rs. 50,000 as advance tax for the months of December, 1996 to March, 1997. After the aforesaid deposits of the amounts, the respondents released the seized documents on April 9, 1997. The petitioner submitted its annual returns for the years 1995-96 and 1996-97. According to the petitioner, along with the returns, it also submitted the books of account/documents necessary for assessment. The matter was fixed for assessment-hearing before the Superintendent of Taxes, Unit-D, Guwahati on March 13, 1999. According to the petitioner, its proprietor appeared before the authority with all necessary documents including the seized documents. The respondent No. 4 on the basis of the report submitted by the respondent No. 5, prepared on the basis of the seized books of account for the years 1995-96 and 1996-97, recorded the finding that the petitioner made suppression of sales to the tune of Rs. 2,46,626 and Rs. 9,25,791 for the assessment years of 1995-96 and 1996-97 and hence, ....
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.... of Rs. 1,000, and as such, it was apparent that no tax as stated in the assessment was ever suppressed by the dealer at any stage. He pointed out that it is the general practice not to release the seized books till the evaded taxes are paid, and in the instant case, it is clear that the appellant was not required to deposit such tax. Shri R. Prasad, Superintendent of Taxes, Guwahati Unit-D appeared at the time of hearing and defended the action of the assessing officer. Heard both the sides and perused records. It appears that the Inspector of Taxes of the area had made seizure of some books of account, which were verified only by him and the assessee was asked to show cause against prosecution. The case was compounded on the assessee's prayer on deposition of the composition money of Rs. 1,000. That apart, the dealer had deposited Rs. 50,000 as an advance tax amount in the assessment year 1996-97. It is curious to observe that the learned assessing officer did not insist on the deposition of the entire evaded tax for both the assessment year before actually compounding the offence and before releasing the books of account and this fact has given credence to the appellan....
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....ted to the petitioner to contradict his report, the impugned orders by assessment based on such alleged report is violative of the principles of natural justice and administrative fairplay. Although the respondents have not filed any counter-affidavit, but the learned counsel appearing for them, have produced the records, I have heard Ms. Nitu Hawelia, learned counsel for the petitioner as well as Mr. R. Dubey, learned Standing Counsel, Revenue. Placing reliance on the decision of the Division Bench of this court Dwijendra Kumar Bhattacharjee v. Superintendent of Taxes, Government of Tripura, Agartala [1990] 78 STC 393; [1989] 2 GLR 461, learned counsel for the petitioner has submitted that there being gross violation of the principles of natural justice in not pointing out the evidence relied upon towards passing the impugned orders of assessment, same is liable to be interfered with. Placing reliance on the same very decision, the learned counsel representing the respondents, on the other hand, has submitted that the petitioner having been provided with due opportunity and it having been provided with all the required documents, the plea of the petitioner regarding violation o....
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....g the same with the assessable turnover is arbitrary and without the principles of natural justice and as such the assessment is illegal and bad in law. " I have given my anxious consideration to the submissions advanced by the learned counsel for the parties and have considered the materials on record. Although the petitioner has contended that the documents were not furnished, but the annexure "B" seizure memo reflects that the seizure was made from the proprietor of the petitioner-company. As against the plea of the petitioner that the report furnished by the respondent No. 5 was not furnished to it, it is found that in the grounds of appeal, no such plea was taken. It is the definite case of the petitioner that the assessment order has been passed behind its back. According to it, there is no material to arrive at such a finding. However, the records produced by the learned Standing Counsel speaks otherwise. The petitioner itself volunteered for depositing of Rs. 50,000 as lump sum advance tax for 1996-97 and for submission of the revised return at the time of assessment, if necessary. The letter dated April 7, 1997 was written by the petitioner to the Superintendent of T....
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....l for the petitioner has placed reliance, i.e., Dwijendra Kumar Bhattacharjee [1990] 78 STC 393 (Gauhati); [1989] 2 GLR 461 is not at all applicable to the facts and circumstances of the case so as to extend help to the case of the petitioner. In paras 11 and 12 of the said judgment, it has been observed that the assessing officer cannot rely upon any evidence or any fact in arriving at his conclusion without first pointing out the same to the assessee and giving him reasonable opportunity of meeting the case which is sought to be made out in the assessment order. It has further been observed that the assessee has a right to inspect the record and the relevant documents. In the instant case, the petitioner was issued with the show-cause notice and it was provided with ample opportunity to have its say in the matter. This is precisely the reason as to why Mr. Dubey, learned Standing Counsel, Revenue has referred to para 3 of the aforesaid judgment, which is quoted below (page 402 of STC): "13. The assessing officer, after making all inquiries and giving reasonable opportunity of hearing to the assessee, can definitely arrive at his own conclusion. However, the assessment made mus....