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TMI Blog2007 (10) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... e Inspector of Taxes, Guwahati, Unit-B in exercise of his power conferred under section 44(3) of the AGST Act, 1993 seized some documents/books belonging to the petitioner at the petitioner's business premises on the ground that some sales through challans were found not recorded duly in the regular books of account with an intention to suppress the sales. In para 6 of the writ petition, the petitioner has stated that although the search and seizure was illegal, there being pressure mounted by the respondents, it compounded the said case on payment of Rs. 1,000 and in addition, Rs. 50,000 as advance tax for the months of December, 1996 to March, 1997. After the aforesaid deposits of the amounts, the respondents released the seized documents on April 9, 1997. The petitioner submitted its annual returns for the years 1995-96 and 1996-97. According to the petitioner, along with the returns, it also submitted the books of account/documents necessary for assessment. The matter was fixed for assessment-hearing before the Superintendent of Taxes, Unit-D, Guwahati on March 13, 1999. According to the petitioner, its proprietor appeared before the authority with all necessary docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's report without verifying the seized books himself and without taking the minimum proceeding to verify the actual facts. It has also been contended by the authorised representative that the assessing officer had released the seized books after the appellant deposited an advance tax amount of Rs. 50,000 and he had compounded the offence after payment of the composition money of Rs. 1,000, and as such, it was apparent that no tax as stated in the assessment was ever suppressed by the dealer at any stage. He pointed out that it is the general practice not to release the seized books till the evaded taxes are paid, and in the instant case, it is clear that the appellant was not required to deposit such tax. Shri R. Prasad, Superintendent of Taxes, Guwahati Unit-D appeared at the time of hearing and defended the action of the assessing officer. Heard both the sides and perused records. It appears that the Inspector of Taxes of the area had made seizure of some books of account, which were verified only by him and the assessee was asked to show cause against prosecution. The case was compounded on the assessee's prayer on deposition of the composition money of Rs. 1,000. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g out to the petitioner anything about the submission of the report at the time of assessment and as such, the assessing officer acted arbitrarily, illegally and without jurisdiction in completing the assessment by relying upon the said report of the Inspector of Taxes behind the back of the petitioner. It has further been stated that since no opportunity whatsoever was granted to the petitioner to contradict his report, the impugned orders by assessment based on such alleged report is violative of the principles of natural justice and administrative fairplay. Although the respondents have not filed any counter-affidavit, but the learned counsel appearing for them, have produced the records, I have heard Ms. Nitu Hawelia, learned counsel for the petitioner as well as Mr. R. Dubey, learned Standing Counsel, Revenue. Placing reliance on the decision of the Division Bench of this court Dwijendra Kumar Bhattacharjee v. Superintendent of Taxes, Government of Tripura, Agartala [1990] 78 STC 393; [1989] 2 GLR 461, learned counsel for the petitioner has submitted that there being gross violation of the principles of natural justice in not pointing out the evidence relied upon towards pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March 31, 1996. 8.. For that the sales reported by the IT are all locally purchased goods under Schedule II which suffered tax at first point and these are duly recorded in the books of account on the basis of which the turnover is submitted. 9.. For that the learned AO's action in determining the sales turnover of Rs. 2,46,632 as suppressed turnover and adding the same with the assessable turnover is arbitrary and without the principles of natural justice and as such the assessment is illegal and bad in law. I have given my anxious consideration to the submissions advanced by the learned counsel for the parties and have considered the materials on record. Although the petitioner has contended that the documents were not furnished, but the annexure B seizure memo reflects that the seizure was made from the proprietor of the petitioner-company. As against the plea of the petitioner that the report furnished by the respondent No. 5 was not furnished to it, it is found that in the grounds of appeal, no such plea was taken. It is the definite case of the petitioner that the assessment order has been passed behind its back. According to it, there is no material to ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the assessing officer did not insist on the deposition of the entire evaded tax for both the assessment years before actually compounding the offence and before releasing the books of account. As the petitioner itself prayed for composition of the offence committed and no dispute having been raised in respect of the allegation relating to taxable turnover, the appellate authority has rightly rejected the appeal. The decision on which the learned counsel for the petitioner has placed reliance, i.e., Dwijendra Kumar Bhattacharjee [1990] 78 STC 393 (Gauhati); [1989] 2 GLR 461 is not at all applicable to the facts and circumstances of the case so as to extend help to the case of the petitioner. In paras 11 and 12 of the said judgment, it has been observed that the assessing officer cannot rely upon any evidence or any fact in arriving at his conclusion without first pointing out the same to the assessee and giving him reasonable opportunity of meeting the case which is sought to be made out in the assessment order. It has further been observed that the assessee has a right to inspect the record and the relevant documents. In the instant case, the petitioner was issued ..... 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