Natural justice breach in ex parte assessment can justify de novo reconsideration on merits after setting aside the order.

Where an ex parte assessment is set aside for want of notice and breach of natural justice, the appellate authority may direct the assessing officer to redo the matter de novo on merits. The text states that once the absence of notice is established, the appellate forum is competent to annul the assessment and require a fresh decision, rather than treating the defect as merely factual. The contrary view taken by the Tribunal was held erroneous, and the High Court should not have treated the issue as only one of fact.

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Issues: Whether, where an ex parte assessment was set aside for want of notice and violation of natural justice, the appellate authority could direct the assessing officer to decide the matter afresh on merits.

Analysis: The assessment had been set aside by the appellate authority on the ground that no notice had been issued before the assessment order was passed. In such a situation, where violation of natural justice is found, the appellate authority is competent in appropriate cases to set aside the order and require the assessing officer to proceed de novo. The contrary view taken by the Tribunal was erroneous, and the High Court ought not to have treated the matter as one involving only a finding of fact.

Conclusion: The appellate authority could validly direct a fresh decision on merits after setting aside the ex parte assessment, and the contrary orders were unsustainable.

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