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2013 (1) TMI 137 - HC - Income TaxBogus Purchase – Block assessment had been made based on materials other than the seized materials - Assessee contended that the same cannot form part of an assessment relating to block assessment - Held that:- As concluding from the affidavit and facts of the case the assessee's contention that the subject matter of assessment in respect of genuineness of the newsprint purchase has to be excluded from the block assessment procedure and it can only be considered under the regular assessment. To that extent we agree with the assessee's contention. In favour of assessee Block Assessment A.Y. 1987-88 to 1997-98 - Chapter XIV-B - Special Audit - Principles of natural justice - Opportunity to the assessee before appointing the Special Auditor – Assessment made hurriedly - Without granting the assessee an opportunity to place the materials – Held that:- The Revenue had referred the matter to the Special Audit and the Special Audit report was submitted on 24.2.1998. In the background of the filing of the Special Audit Report on 24.2.1998 and the assessee filing his objection on 25.2.1998, when we look at the next date of hearing, it fell on 5.3.1998 and immediately on 13.3.1998 the assessment order was made. We do not find from the order that sufficient opportunity was granted to the assessee on the materials gathered. The Revenue should have afforded sufficient opportunity of hearing to the assessee to substantiate his case. In the absence of compliance of the principles of natural justice, setting aside the order of the Tribunal. Remand the matter back to the A.O.
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