Natural justice in reassessment: assessment quashed where no meaningful hearing was given after remand directions.

An assessment order passed without a meaningful opportunity of hearing, and contrary to earlier remand directions requiring fresh consideration after hearing the assessee, cannot stand. The High Court held that ineffective service of summons and denial of a fair chance to produce records violated natural justice, so the assessment was unsustainable. The order was quashed and the matter remitted for de novo disposal, with liberty to the assessing authority to pass a fresh order after the assessee's appearance and production of books of account.

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Issues: Whether the assessment order passed without granting sufficient opportunity of hearing and after earlier remand directions could be sustained.

Analysis: The impugned assessment was challenged on the ground that the assessee had not been effectively served with the earlier summons and had not been given a fair opportunity to place its case and records. The matter had already been remanded by the appellate authority with a direction to reconsider the assessment afresh in accordance with law after hearing the assessee. In these circumstances, the order was found unsustainable and was set aside, with liberty to the assessing authority to pass a fresh order after the assessee's appearance and production of books of account.

Conclusion: The impugned assessment order was quashed for violation of fair hearing requirements, and the matter was remitted for fresh consideration.

Final Conclusion: The assessee obtained relief by setting aside of the assessment order and a direction for fresh disposal after hearing, thus protecting compliance with natural justice in reassessment proceedings.

Ratio Decidendi: An assessment order passed without affording a meaningful opportunity of hearing, especially after an earlier remand directing fresh consideration, cannot be sustained and must be set aside for de novo adjudication.

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