Natural justice in assessment proceedings: denial of reasonable time to reply vitiates the assessment and warrants quashing.

Assessment orders passed after serving notice in the afternoon and requiring a reply by the next morning were held unsustainable because the assessees were denied a reasonable opportunity to respond. The record showed a request for more time, but the assessment was completed the very next day, amounting to a gross breach of natural justice. The appellate dismissal did not cure that defect. The assessments were quashed, with liberty to the revenue to issue fresh notice, allow sufficient time, and proceed in accordance with law.

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Issues: Whether the assessment orders were sustainable in view of the alleged violation of principles of natural justice and denial of adequate opportunity to submit a reply.

Analysis: The assessees were served with notice in the afternoon requiring comments by the next morning, leaving insufficient time to prepare and file a reply. The record showed that a request for more time had been made, yet the assessment was completed the very next day. The absence of a fair opportunity to respond amounted to a gross violation of natural justice, and the appellate dismissal did not cure that defect.

Conclusion: The assessment orders could not be sustained and were quashed, with liberty to the respondents to proceed afresh by issuing a fresh notice, allowing sufficient time for reply, and acting in accordance with law.

Final Conclusion: The assessees succeeded because the impugned assessments were set aside for breach of natural justice, while the revenue was left free to recommence proceedings lawfully.

Ratio Decidendi: An assessment passed without granting a reasonable opportunity of hearing is vitiated for breach of natural justice and is liable to be quashed.

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