Interim stay ends with dismissal of SLPs; notice defects in reassessment may justify remand, not annulment.

Dismissal of special leave petitions discharged the Supreme Court's interim stay, and an earlier direction for expeditious disposal did not keep the revisions stayed thereafter. The challenge to reassessment and assessment notices on limitation and service grounds also failed where the notice was served by affixation and the assessee appeared and filed objections admitting service. For the other years, any defect in notice was treated as a procedural irregularity affecting natural justice, so the assessments were rightly set aside and remanded for fresh consideration. The revisions were therefore dismissed, and the orders directing fresh assessment were left undisturbed.

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Issues: (i) Whether any subsisting order of stay passed by the Supreme Court barred the High Court from proceeding with the revisions; (ii) Whether the notices for reassessment and regular assessment were barred by limitation or otherwise invalid so as to vitiate the assessments.

Issue (i): Whether any subsisting order of stay passed by the Supreme Court barred the High Court from proceeding with the revisions.

Analysis: The interim stay granted by the Supreme Court stood discharged when the special leave petitions were dismissed. The earlier order directing expeditious disposal of the appeals did not keep the proceedings in the revisions stayed thereafter.

Conclusion: The objection based on subsisting stay was rejected against the assessee.

Issue (ii): Whether the notices for reassessment and regular assessment were barred by limitation or otherwise invalid so as to vitiate the assessments.

Analysis: For the reassessment year, the notice under section 21 was served by affixation and the assessee had appeared and filed objections admitting service, so the plea of non-service within limitation failed. For the other years, even where notice was disputed, the defect was treated as a procedural irregularity affecting the observance of natural justice. The appellate authority had rightly set aside the assessments and directed fresh consideration, and the Tribunal correctly affirmed that course.

Conclusion: The challenge to the assessments failed and the remand for fresh assessment was upheld against the assessee.

Final Conclusion: The revisions were found to be without merit and were dismissed, leaving the orders directing fresh assessment undisturbed.

Ratio Decidendi: Dismissal of special leave petitions discharges an interim stay, and defects in service of notice that amount to procedural violations of natural justice can be cured by setting aside the assessment and remanding the matter for a fresh decision.

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