Rejection of C Forms without giving opportunity to Rectify Defects is invalid

By CA Sandeep Kanoi Income Tax Judiciary June 8, 2017

TaxGuru Citation: 2017 taxguru.in 572
Case Name: M/s. Srinidhi Oil Products Vs Additional Commissioner (CT) (Andhra Pradesh High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts

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The petitioner, who is a registered dealer under the General Sales Tax Act, 1956, has come up with the present writ petition challenging a revised order of assessment passed under the General Sales Tax Act, 1956.

2. Heard Mr. G. Narendra Chetty, learned counsel for the petitioner and Mr. S. Suri Babu, learned Special Standing Counsel for the respondents.

3. Obviously, the impugned order has been passed without the petitioner either filing objections or appearing for personal hearing. But what has happened in this case is that the C-Forms filed by the petitioner at the time of assessment were accepted by the Assessing Officer. But in a revision, the Additional Commissioner has rejected those C-Forms on the ground of discrepancies. In such cases, two issues would normally arise for consideration, viz., (1) as to whether after a long period of time a revisional authority can reject the C-Forms which were accepted by the Assessing Officer and (2) as to whether while doing so, the dealer should have an opportunity or not.

4. On the first question, we have our own doubts. If an Assessing Officer accepts the statutory forms and passes an order of assessment, a revisional authority should normally go by it, unless the Assessing Officer has any suspicion. To reject the very same Forms accepted by the Assessing Officer, would tantamount to finding fault with the manner in which the Assessing Officer accepted the Forms.