TMI Blog2014 (3) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... tax liability on the allegation of suppression of facts based on inspection report. When tax is levied, it must be legally recoverable and if the assessee could substantiate that tax liability is not to the extent as assessed, there has to be a true assessment - That is the primary purpose of issuing show-cause notice soliciting reply and then to pass order - It is only when such order is passed after giving opportunity to the assessee, it could be enforced through punitive action, i.e. demand notice – matter remitted back to the department for assessment - Assessee directed to produce books of account and file statement - Decided in favour of assessee. - WP No.7917/2014 (T-RES) - - - Dated:- 17-2-2014 - Dr. Jawad Rahim, J. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calling for production of books of account for the period 2012-13 to conclude the assessment. Responding to the notice, petitioner sought time to produce relevant documents stating it was not readily available as it was with the auditors for audit purpose. d) The grievance of the petitioner is, without considering the request of the petitioner to give time for production of books of account, respondent has issued the proposition notice solely based on the inspection report proposing to levy tax. In the notice, respondent pointed out the discrepancies in the inspection report without giving opportunity to the petitioner to explain. e) It is alleged, respondent was unreasonable in giving only 7 days time within which it was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unjustifiably refused to accommodate and has proceeded to determine alleged tax liability on the allegation of suppression of facts based on inspection report. 6. It is not in dispute, petitioner has given reply vide Annexure-E seeking four weeks time. Undoubtedly the impugned order is passed without giving time asked for by the petitioner. The ground is, petitioner has suppressed tax. Therefore, before any punitive order is passed, there has to be assessment in reality and that will be possible only on verification of books of account. Even if the petitioner has not produced the relevant documents earlier, petitioner had sought 4 seeks time to do so. Instead of granting time, the assessing authority has proceeded to determine tax liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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