TMI Blog1997 (4) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent on October 4, 1996, the learned Standing Counsel requested for some time to produce the order sheets of the cases relating to the assessment years in question to demonstrate that the assessee himself had declined to avail the opportunity to show cause or lead evidence in rebuttal opposing rejection of the accounts submitted by him saying that apart from his statement he had nothing else to say. The learned Standing Counsel later on produced the records which have also been perused. 3.. The facts shorn of details and necessary for the disposal of these revisions lie in a narrow compass. The assessing authority had passed the assessment orders in question on the basis of best judgment assessment, observing that the survey reports in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of tax by Rs. 2,900, Rs. 3,100 and Rs. 9,900 respectively. 5.. It may be noticed that initially the ex parte orders of assessment had been passed. These orders were subsequently recalled in the proceedings under section 30 of the U.P. Trade Tax Act, 1948. The assessing authority in his orders had observed that after setting aside the ex parte order when the case was reopened for hearing, the statement of the assessee was recorded. The record reveals that after the statement of the assessee was taken down and he had concluded his statement, he was again recalled and a statement to the following effect was recorded: Uprokt Bayan Ke Atirikt Mujhe Kuchh Nanhi Kahna Hai Atah Karan Batao Notice Dene Ki Aawashyakta Nahee. After rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be deemed to have been waived and no interference is called for on that account. 9.. The question which, therefore, arises for consideration is as to whether the respondent-authorities could proceed on the basis that the assessee had waived the right secured in his favour as indicated hereinabove and rejecting the claim of the assessee determine the tax liability on the basis of the best judgment assessment utilising the survey reports against the assessee without bringing to his notice that these survey reports will be utilised against him and without affording an opportunity to him to submit his explanation thereto. 10.. As observed by the honourable Supreme Court in the case of Associated Hotels of India Ltd. v. S.B. Sardar Ranj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the party concerned had himself behaved in such a way as would otherwise tie his hands. 12.. It may further be noticed that the rules of natural justice can operate in areas not covered by any law validly made and are evolved to ensure fair adjudication whenever rights of an individual are affected. They are aimed to secure fair play in action and prevent miscarriage of justice. One of the first principles of natural justice is that you must not permit one side to use means of influencing a decision which means are not known to the other side. It has to be emphasised that any person even if represented at any enquiry who is to be adversely affected by any decision therein should not be left in the dark as to the risk of the finding bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Tax reported in [1988] 8 STR 186 had clearly pointed out that the opportunity contemplated under the law which required to be provided to the assessee must be a reasonable opportunity and not an idle formality. The express object of giving opportunity is to afford protection to the tax-payer against arbitrary and capricious assessment. Principles of natural justice require that before charging a person with financial liability, he should be informed of the material on which the charge was going to be imposed and the assessee must be given an opportunity to rebut the effect of the material, if he can. It was emphasised that this is so, even when the material used is within the knowledge of the person proceeded against. It was further emph ..... X X X X Extracts X X X X X X X X Extracts X X X X
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