Judicial Review of Fresh Assessment Orders

In a recent legal case, the High Court of Judicature at Hyderabad conducted a thorough review of the fresh assessment orders issued by the Assessing Officer. The Court’s analysis focused on the jurisdiction of the Assessing Officer to make such assessments during pending revisional proceedings. The judgment highlighted the importance of procedural fairness and adherence to legal remedies available to parties. This case sheds light on the significance of judicial review in upholding principles of justice and fairness in tax assessments.

Facts

The High Court of Judicature at Hyderabad allowed the writ petitions filed by the original assessees.
The assessment orders passed by the Assessing Officer – Commercial Tax Officer, Brodipet Circle, Guntur, State of Andhra Pradesh were quashed.
The respondents are registered dealers holding VAT Registration.
Dealers filed writ petitions before High Court challenging fresh assessment orders
High Court quashed fresh assessment orders solely on the ground of pending suo moto revisional proceedings
State appealed against High Court’s decision
Dealers objected to Assessing Officer’s jurisdiction to make fresh assessment during pending revisional proceedings
Commissioner of Commercial Taxes initiated suo moto revisional powers during the process
Assessing Officer issued show cause notices for fresh assessment orders during revisional proceedings
Hearing proceeded ex-parte as respondents did not appear
Assessment orders were passed by the Assessing Officer for respective assessment years on 25.07.2012

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Analysis

The High Court should not have directly entertained the writ petitions challenging the fresh assessment orders.
The dealers should have availed the alternative remedy of appeals before the First Appellate Authority.
The High Court’s judgment and orders quashing the fresh assessment orders are deemed unsustainable.
The High Court did not provide any observation on the merits of the fresh assessment orders.
High Court’s judgment and orders quashing fresh assessment orders under Article 226 are unsustainable.
Dealers were required to appeal to the First Appellate Authority against the fresh assessment orders.
If fresh assessment orders had favored the State, State could have objected due to pending revisional proceedings.
In this case, fresh assessments went against the dealers.

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