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2014 (5) TMI 722 - MADRAS HIGH COURTShaky Reassessment - Assessment proceedings in violation of natural justice – No opportunity of cross examination when cash bill books cheque books etc were stolen away – Jurisdiction u/s 16 of the Tamil Nadu General Sales Tax Act, 1959 – Held that:- It is no doubt true that the assessee had not produced books of accounts before the Officer, for which, the assessee had given valid reason that because of his ill health, he could not appear on 07.12.1991 in respect of the notice dated 19.11.1991 regarding reassessment - Without even a verification and considering the prayer for adjournment, the reassessment order seems to have been made on 10.12.1991, which itself is a violation of principles of natural justice. When the appeal before the First Appellate Authority related to 1989-90, we do not understand the relevance of 1986-87 for reopening of the assessment of the year 1989-90 - Tribunal confirmed this order - None of the authorities had discussed as to the source of these bills and how the said bills were related to the assessee - Merely because there were certain notes carrying the name of the assessee, per se, without any enquiry or material, AO could justifiably assume jurisdiction u/s 16 of the Tamil Nadu General Sales Tax Act, 1959. The AO did not say in his reassessment order about the materials not considered while making the original assessment - Thus, the source of getting the materials relied on by the AO for reassessment remaining unanswered and unexplained, we do not find any ground to upheld the order of the Tribunal - Although, Tribunal is a final fact finding authority, yet without any material, it confirmed the reassessment order and the reasoning does not rest on any material - Therefore, the basis of the re-assessment itself being very shaky, in the absence of materials disclosed as to whether the reassessment was based on account of inspection or based on third party's information and opportunity not being granted to the assessee, No ground found for sustaining the order of assessment – Therefore, the Revision stands allowed - The order of the Tribunal is set aside – Decided in Favour of assessee.
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