TaxTMI 
TaxTMI 
2015 (1) TMI 808
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.... 1999 (for short, 'OET Act'). It had submitted the return for the tax period from 01.04.2009 to 06.09.2012 disclosing true and correct turnover and paid the tax as per the return filed. It maintains required books of account for its business activities for compliance of the OVAT Act. Pursuant to the notice issued by opposite party No.2-STO, Rourkela II Circle, Panposh, Rourkela to the petitioner under Section 43 of the OVAT Act, it appeared before opposite party No.2 on 21.10.2013 and 12.11.2013 along with purchase register, purchase bills, sales registers and sale bills for verification. Petitioner on the said dates prayed opposite party No.2 to provide the report for submission of reply on the allegation made against it. On 26.11.2013, the petitioner submitted a written note praying opposite party No.2 to provide a copy of the report. Opposite party No.2 without providing a copy of the report completed the impugned assessment under Annexure-1 raising demand of Rs. 8,34,77,727/- towards tax, interest and penalty. Hence, the present writ petition. 3. Mr.D.Pati, learned counsel for the petitioner submitted that the allegations on the basis of which the impugned assessment order has....
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....09 to 06.09.2012 vis-à-vis with written compliance of the Ld. Advocate. The detail reaons of reopening of the case was supplied to the dealer. But the dealers neither submitted any satisfactory explanation nor produced any documentary evidence in order to nullify the allegation made in the tax evasion report submitted by the Enforcement Wing. Thus, it is proved beyond my doubt that the dealer is engaged clandestine business activities and knowingly avoiding to submit the written compliance for his defence. Considering the allegation contained in the tax evasion report submitted by the Deputy Commissioner of Commercial Enforcement, Sambalpur true and correct, the re-assessment order is decided as per fraud case report basing on the information and materials available in the record on merit." 8. Perused the assessment records produced by Mr.Kar from which it reveals that pursuant to the notice issued for assessment of escaped turnover, the petitioner appeared from time to time before the Assessing Officer with books of account and the case was partly heard. Order sheet does not reveal that the materials utilized against the dealerpetitioner in the assessment order were confro....
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.... Department is required to refund the amount collected during pendency of the appeal and revision along with interest as provided under the statute. 10. The Hon'ble Supreme Court in C. Vasantlal and Co. v. Commissioner of Income-tax, Bombay City [1962] 45 ITR 206 observed as follows: "The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining it." 11. The Hon'ble Supreme Court in State of Kerala v. K. T. Shaduli Yusuff [1977] 39 STC 478 held as under: "... The tax proceedings are no doubt quasi-judicial proceedings and the sales tax authorities are not bound strictly by the rules of evidence, nevertheless the authorities must base their order on materials which are known to the assessee and after he is given a chance to rebut the same. ..." 12. In Kishinchand Chellaram v. Commissioner of Income-tax, Bombay City II [1980] 125 ITR 713, the Hon'ble Supreme Court held that it was true that proceedings under the income-....
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....his notice for rebuttal. This is the requirement of the natural justice. The principles of natural justice are based on two basic pillars, i.e., (i) nobody shall be condemned unheard (audi alteram partem), and (ii) nobody shall be judge of his own cause (nemo debet esse judex in propria sua causa)." 17. Needless to say that an assessing authority is entitled to collect the materials behind the back of the assessee. It is not necessary that all the materials so collected by the assessing authority need be confronted to the assessee. Only those materials which the assessing authority intends to utilize against the assessee during assessment are bound to be disclosed to the assessee. 18. Considering the facts and circumstances of the case as well as the decisions of the Hon'ble Supreme Court and this Court, we are of the considered opinion that a dealer is entitled to be supplied with the materials intended to be used against him in the assessment proceeding for rebuttal and the dealer's explanation with regard to those materials is bound to be considered by the assessing officer in the assessment order either accepting or rejecting the same. 19. The next question relates to th....