TMI Blog2017 (6) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... er material on record on the basis of which the assessing authority could be said to have any reason to reject the books of accounts maintained in the ordinary course of business and pass reassessment order on the basis of best judgment. Mere affirmation of the reassessment order passed by the assessing authority under Section 39 of the Act by the two higher appellate forums does not deter us from holding that the very initiation of the reassessment proceedings without any further incriminating material was illegal. Revision petition allowed - decided in favor of assessee. - SALES TAX REVISION PETITION No. 100004 OF 2014 - - - Dated:- 30-5-2017 - DR. VINEET KOTHARI AND DR. H. B. PRABHAKARA SASTRY JJ. PETITIONER: (BY SRI. ABBIG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax thereon at ₹ 2,541/-, but also paid compounding fee of ₹ 5,000/- as imposed upon him under Section 79 read with Section 82 of the Act. 4. Despite the said assessment made under Section 38 of the Act imposed upon him and the said tax of ₹ 2,541/- and compounding fee of ₹ 5,000/- paid, the learned assessing authority initiated the impugned re-assessment proceedings under Section 39 of the Act and passed the impugned best judgment assessment order for the month of September 2007 on 30th June 2009 imposing the additional tax, interest, penalty of ₹ 10,847/- as aforesaid, observing that the assessee was in the habit of not issuing the tax invoices with deliberate intention to evade the tax to the Department. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d composition fee of ₹ 5,000/- as imposed upon him under Section 82 of the Act for the alleged offence under Section 79 of the Act for not issuing regular bills. He submitted that no other incriminating material was found by the assessing authority either during the course of that survey or thereafter, justifying the issuance of fresh notice for reassessment under Section 39 of the Act, for the same period on the basis of the same material. 7. He has relied upon certain judgments rendered under the provisions of Income Tax Act which are not of full application in the present case, because the powers of reassessment under the Income Tax Act essentially requires recording the reasons and assessing authority should have reason to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessing authority on the basis of the loose slips collected during the course of survey on 19th September 2007 and the tax liability as well as compounding fee were imposed and collected from the assessee. The Revenue has failed to point out any other material on record on the basis of which the assessing authority could be said to have any reason to reject the books of accounts maintained in the ordinary course of business and pass reassessment order on the basis of best judgment. The observations of the learned assessing authority in the impugned reassessment order under Section 39 of the Act that the assessee was in the habit of not issuing tax invoices with the deliberate intention to evade payment of tax is without any basi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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