9911796707
TMI Blog1971 (2) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... chari Street, Madras (Park Town) till 30th June, 1964. Thereafter, he left Madras and he had no residence of his own excepting his business premises. On the 2nd July, 1965, the special police establishment searched both the business premises and the residential premises at No. 7, Kalappa Achari Street, Madras, apparently under the impression that the petitioner continued in the said premises even after 30th June, 1964. It is common ground that on the date of search the petitioner was not in the premises but one Mr. Valchand. The police recovered certain materials from both the premises searched by them and this information was apparently made available to the commercial taxes department. The respondent after having been apprised of such a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is seen that the commercial taxes department took steps to see that the records seized by them and on which their proposal to assess was based were made available to the assessee during working hours. The petitioner was called upon to go over to the office of the respondent on 23rd February, 1966. The petitioner sought an adjournment on that day through his Advocate and he requested not only for a postponement of the date of inspection but also to arrange for such inspection of the documents on any date in the month of March, 1966. To this counsel's reply dated 25th February, 1966, no answer was given and the impugned order of assessment was made on 28th February, 1966. The impugned order reflects the quantum of tax, penalty etc. payable b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration of the State and for the due safeguarding of the State revenues. But that does not mean that the revenue, and in this case the commercial taxes department, can take it for granted that the material seized by the police department from a premises, which according to the petitioner was not his residential premises, can be the basis for a best judgment assessment without taking any effort to connect the material so seized with the petitioner and his business. It is not even stated that the revenue has taken all steps to verify such material by taking statements from the parties concerned, and that the assessee who is the aggrieved person was given the opportunity to crossexamine such persons who were prepared to depose against him. Natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prepared to speak against him. In the instant case, the commercial taxes department and the police department exchanged their records, and the revenue is said to have enquired some persons behind the back of the assessee and ultimately all such materials which were screened from the petitioner formed the basis of the so-called "final assessment". In these circumstances, I am of the view that there has been a violation of the principles of natural justice. The procedure adopted by the revenue not only offends the principle of audi alteram partem but also if accepted would give the go-by to the well-known rule that a person to be charged with anything which is not normal should be given an effective opportunity to explain the projected charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department intends to rely upon any statement made by third parties then such persons shall be produced by them before the Appellate Assistant Commissioner for the purpose of cross-examination so that not only the records can be complete but justice can be said to have been done. No further directions are necessary. In the peculiar circumstances of this case, wherein an addition of a turnover of nearly 14 lakhs was made by the revenue, without following the essential principles of natural justice, the Appellate Assistant Commissioner shall proceed with the enquiry as directed above without demanding the tax which would flow from the impugned order in question. Writ Petition No. 605 of 1966.-In view of my order in W.P. No. 604 of 1966, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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