Fair hearing in appellate proceedings: Tribunal order set aside and matter remanded after denial of opportunity to the assessee.

An appellate order passed by the Tribunal without affording the assessee an effective opportunity of hearing was unsustainable. The Kerala HC held that reversal of the assessee's favour in the absence of proper notice and hearing violated fair procedure, and the matter had to be remanded for fresh disposal. The Tribunal's order was therefore set aside, with directions to issue notice and hear the assessee before passing a new order.

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Issues: Whether the Tribunal could dispose of the appeal and reverse the order in favour of the assessee without granting an opportunity of hearing, and whether the matter should be remanded for fresh disposal after notice.

Analysis: The Tribunal had proceeded without affording the assessee an effective opportunity of hearing. The absence of proper hearing before reversing the order in favour of the assessee was found to be unsustainable. The matter was not examined on merits by the Court.

Conclusion: The order of the Tribunal was set aside and the matter was remanded for issuing notice to the assessee and for affording an opportunity of hearing before fresh orders are passed.

Final Conclusion: The appeal succeeded on the procedural ground of denial of hearing and the dispute was sent back to the Tribunal for reconsideration after due notice and hearing.

Ratio Decidendi: An appellate order cannot be sustained when passed without affording the assessee a fair opportunity of hearing, and such an order is liable to be set aside and remanded for fresh disposal.

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