Case Law Details
Next IT World Vs Assistant Commissioner (CT) (Madras High Court)
The respondent in all the three impugned orders had stated that the Inspecting Officers had verified the relevant records and that they had correctly proved along with recorded evidence and that it was accepted by one Thiru.S.Kathir Rajan, who was the Managing Director of the petitioner entity during the time of inspection. It has been further stated that the Inspecting Officers had verified the purchase and sales and noticed that the return filed by the dealer is incorrect and incomplete. The assessing authority chose to overrule all the objections of the petitioner as untenable in a single line. It is obvious that the respondent has not at all considered the materials from an independent perspective. Of-course, the report of the Enforcement Wing can provide a starting point for reopening the assessment. But the assessing authority must have his own approach. His discretion cannot be governed or bound by the stand taken by the Enforcement Wing Officials. In the case on hand, the petitioner had stated that he was coerced into making some admissions at the time of inspection.
I am satisfied that the respondent has merely reproduced the stand of the Enforcement Wing Officials and has not dealt with the issue independently. A learned Judge of this Court in Amutha Metals Vs. Commercial Tax Officer, Mannady (East), Assessment Circle, Chennai (2007) 9 VST 478 (Mad) held that if the reasoning stated by the Enforcement Officials is taken as correct reason, there is no need for the assessing officer to be there to frame the assessment. The Enforcement Wing Officials themselves would have framed the assessment. Under the statutory provisions, it is expected from the assessing officer to consider the objections and either accept or reject the same by giving valid reasons by applying his mind. This approach has not at all been adopted in the case on hand. On this sole ground, the orders impugned in these writ petitions are quashed. These Writ Petitions are allowed. The matter is remitted to the file of the respondent to pass orders afresh in accordance with law.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
Heard the learned counsel on either side.
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