Remand leading to fresh assessment can replace the original assessment where material issues are reconsidered and liability changes.

A remand order that requires the Assessing Authority to reconsider material issues and return fresh findings sets aside the original assessment as a whole. Where the subsequent order alters the dealer's tax liability, the later assessment operates as a new assessment in substitution of the earlier one, and the original assessment does not remain intact. The reference was answered in favour of the assessee and against the revenue, with the reassessment treated as replacing the original assessment.

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Issues: Whether the order of remand made by the revising authority had the effect of setting aside the original assessment as a whole and whether the fresh assessment made thereafter was in substitution of the original assessment.

Analysis: The remand order was not confined to a formal or limited direction leaving the earlier assessment intact. It required the Assessing Authority to reconsider specified matters and to return clear findings, showing that the original assessment could not survive in its previous form. Once the fresh assessment was made, the tax liability of the dealer was altered, which indicated that the later assessment operated as a new assessment in place of the earlier one. A reassessment made after such remand is treated as a second assessment in substitution of the earlier assessment that stood displaced.

Conclusion: The remand order had the effect of setting aside the original assessment as a whole, and the fresh assessment was in substitution of the original assessment, in favour of the assessee and against the revenue.

Final Conclusion: The reference was answered in favour of the assessee, with the result that the reassessment was treated as replacing the original assessment.

Ratio Decidendi: Where an assessment is remanded for fresh determination of material issues and the later order alters the tax liability, the later assessment is a substitution of the earlier assessment and the original assessment does not remain intact.

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