Assessee Should Be Given Opportunity To Produce Evidence Which Has Impact On Tax Liability : Calcutta High Court
The Calcutta High Court bench has held that assessees should be given the opportunity to produce evidence which has an impact on tax liability. The division bench of Justice Debangsu Basak and Justice Bibhas Ranjan De has observed that tax authorities must adjudicate upon the tax liability in accordance with the law. Similarly, if the assessee is unable to present certain evidence...
The Calcutta High Court bench has held that assessees should be given the opportunity to produce evidence which has an impact on tax liability.
The division bench of Justice Debangsu Basak and Justice Bibhas Ranjan De has observed that tax authorities must adjudicate upon the tax liability in accordance with the law. Similarly, if the assessee is unable to present certain evidence that affects the tax liability, the assessee should be given a reasonable opportunity to bring the evidence to the attention of the tax authorities.
The petitioner/assessee has challenged the order assessing the tax liability of the petitioner on May 3, 2021. However, subsequently, the writ petitioner received the document dated August 25, 2021, which impacts the tax liability of the appellant/writ petitioner. According to the department, the adjudication of tax liability was completed on the passing of the order of the revisional authority.
The petitioner/assessee submitted that the order of refund was passed on May 3, 2021 by the revisional authority. Subsequently, the assessee received a Certificate of Export dated August 25, 2021. There was no lacuna on the part of the assessee in receiving the certificate. If the certificate is placed before the revisional authority, the petitioner will be entitled to a refund. The certificate is material evidence which the revisional authority needs to consider in order to assess the tax liability of the petitioner.
The petitioner contended that the tax authorities can not derive an undue benefit from circumstances which are beyond the control of the appellant. The tax authorities are obliged to give actual credit for the tax paid. The document dated August 25, 2021, pertains to the liability of tax relating to the appellant and, therefore, ought to be taken note of by the tax authorities. The appellant was deprived of the tax benefits that it was otherwise entitled to.
The court noted that it was not a case that the appellant/writ petitioner was in possession of certain documents which the appellant/writ petitioner did not place before the revisional authority. Rather, it is a case where the appellant/writ petitioner received a document subsequent to the order of the revisional authority.
"We are of the view that another opportunity should be granted to the appellant/writ petitioner to place the document dated August 25, 2021 before the revisional authority. The appellant/writ petitioner is at liberty to approach the revisional authority within a fortnight from this date with regard to the order of assessment dated May 3, 2021. If so approached, the revisional authority is requested to reconsider its order passed on refund, taking into account the document dated August 25, 2021 in accordance with law," the court said.
Case Title: Nipika Agarwal Proprietress of S.N. Trading Versus Assistant Commissioner of State Tax
Case Citation: 2022 LiveLaw (Cal) 234
Dated: 09.06.2022
Counsel For Appellant: Advocates Sandip Choradia, Esha Acharya
Counsel For Respondent: Advocates Hirak Barman, Bikramaditya Ghosh