The Madras High Court recently held that the case study, though can be a reason for Revision Notice, cannot be the sole basis for completing assessment for the purpose of the Tamil Nadu Value Added Tax Act.
In the instant case, the assessing officer revised the turnover conceded by the assessee on the basis of a case study conducted on the business activities of the assessee. Based on such case study, the deficit production was arrived by considering the input of raw materials. The assessee approached the High Court against the order.
Allowing the petition, the Court ruled that “Probably, the case study can be a reason for issuing a revision notice, but that cannot be the sole basis for completing the assessment.”
The Court also noted that the impugned order was guided by the ‘D3’ report formulated by the Enforcement Wing Officers.
“The Assessing Officer being an independent authority cannot be bound over by a ‘D3’ proposal. Thus, the impugned assessment order is completely flawed for the above errors,” the Court said.
Read the full text of the Order below.
