Reasonable opportunity of hearing and admission of additional evidence led to restoration for fresh adjudication.

The Tribunal held that the assessee was denied a reasonable opportunity of hearing because the show-cause notice preceded the draft assessment order by too short a period to gather and file relevant material, particularly with intervening holidays. It further held that the additional evidence before the Dispute Resolution Panel was relevant to the core dispute and should have been admitted in the interests of justice. As the matter required reconsideration on a proper factual record, the assessment was restored for fresh adjudication after giving the assessee adequate opportunity to place material on record.

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Issues: Whether the assessee was denied a reasonable opportunity of hearing and whether the additional evidence tendered before the Dispute Resolution Panel ought to have been admitted, warranting remand for de novo assessment.

Analysis: The record showed that the show-cause notice was issued shortly before the draft assessment order was passed, leaving no meaningful time for the assessee to collect and place relevant material, especially in view of the intervening holidays. The Tribunal found that the assessee had not been afforded a reasonable opportunity to present its case. It further held that the additional evidence was relevant to the core controversy and ought to have been admitted in the interests of justice. Since the matter required fresh consideration on a proper factual record, the assessment had to be reopened and decided again after giving the assessee adequate opportunity.

Conclusion: The assessee succeeded on the procedural challenge, and the matter was restored to the Assessing Officer for fresh adjudication after granting a reasonable opportunity of hearing and permitting the relevant material to be placed on record.

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