Revisional orders set aside for failure to consider material already on record and for lack of effective application of mind.

Revisional orders were held unsustainable because the authority proceeded on the assumption that the assessee had not responded, although the record contained the assessee's reply and supporting enclosures. The authority failed to consider material already filed and did not apply its mind to relevant record before revising the assessment. On that basis, the orders were set aside and the matter was remitted for fresh consideration, with directions to afford personal hearing and to consider both the existing material and any further submissions by the assessee.

---

---

Issues: Whether the revisional orders passed by the first respondent were liable to be set aside for non-consideration of the material filed by the assessee and for passing the orders without affording effective consideration to the assessee's explanation.

Analysis: The impugned revisional orders were passed on the premise that the assessee had not responded to the notices. The record showed that the assessee had in fact placed material before the revisional authority, including the reply dated 27 July 2011 and supporting enclosures received in the office on 17 August 2011. The authority failed to advert to that material while exercising revisional jurisdiction. Such omission amounted to failure to properly discharge the duty of consideration of relevant material before revising the orders. Since the revisional orders were founded on an incomplete appreciation of the record, they could not be sustained.

Conclusion: The revisional orders were set aside and the matter was remitted for fresh consideration after granting personal hearing and considering the material already filed as well as any further material to be produced by the assessee.

Ratio Decidendi: A revisional order passed without considering relevant material already on record and without effective application of mind is unsustainable and must be set aside with remand for fresh adjudication.

---