Personal hearing in adverse assessment proceedings is mandatory when requested; denial can justify quashing and remand.

A revised assessment order cannot be sustained when an assessee has specifically sought a personal hearing and the authority passes an adverse order without affording it. Applying the settled requirement of audi alteram partem, the Madras HC set aside the assessment for denial of hearing and remitted the matter for fresh consideration after hearing the petitioner. The merits of the declaration forms and reassessment were left open to the authority.

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Issues: Whether the revised assessment order was liable to be set aside for denial of personal hearing before passing an adverse order.

Analysis: The petitioner had sought personal hearing in the reply to the revised assessment proposal, and the assessment was completed without affording that opportunity. The Court followed the settled principle that when an assessee specifically asks for a hearing and the authority proposes an adverse determination, the order should not be passed without hearing the assessee. On that ground, the impugned assessment could not be sustained. The merits of the declaration forms and the reassessment were left to be considered afresh by the authority.

Conclusion: The revised assessment order was set aside for violation of the requirement of personal hearing, and the matter was remitted for fresh decision after hearing the petitioner.

Ratio Decidendi: An adverse revisional or assessment order cannot be sustained where a requested personal hearing is denied, and the order is liable to be quashed and remanded for fresh consideration.

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