Officers cannot reject Claim of Sales/Returns merely on assumption of failure to produce Documentary Evidence: Madras High Court [Read Judgment]
The Madras High Court held that officers cannot reject claims of sales or returns merely on the assumption of failure to produce documentary evidence.
The petitioner, M/s.Kurlon Enterprises Limited challenged orders of assessment passed in terms of the provisions of the Tamil Nadu Value Added Tax Act, 2006 for the periods 2009-10 to 2012-13.
The petitioner challenged the orders on the ground relating to the bar of limitation.
According to the counsel for the petitioner, orders of deemed assessment under Section 22(2) of the Act have been passed and as such, the impugned orders are barred by limitation insofar as they have been passed beyond the time limit stipulated under Section 27 of the Act.
The proviso to Section 22(2) stipulates that returns submitted for the years 2006-2007 to 2010-2011 in respect of which assessment orders had not been passed shall be deemed to have been assessed on the 30th day of June 2012 and an order of assessment shall be deemed to have been passed for the periods 2009-10 and 2010- 11.
Section 27 uses the phrase ‘determination’ and the pre-assessment notice commences the process of determination.
The Single Judge bench of Justice Anita Sumanth, while rejecting the contention of the petitioner observed that it would suffice that proceedings initiating an assessment should commence prior to the date of expiry of limitation but in the present case, notices initiating proceedings for revision of assessments have admittedly been issued in all cases, before the expiry of the period of limitation.
The court opined that the exercise of reconciliation has not been conducted in the manner as required by law. The impugned assessments are thus set aside.
The court while issuing the directions said that the petitioner will appear before the Assessing Officer on Monday, the 7 December, 2020 at 10.30 a.m., without awaiting any further notice in this regard, with all relevant particulars in support of its claim of sales returns and orders of assessment de novo on this aspect shall be passed within a period of 4 weeks.