Natural justice in block assessment requires a fair hearing; inadequate opportunity led to remand for fresh consideration.

The block assessment was held vitiated because the assessee was not given a fair and effective opportunity to respond before finalisation. Notice was issued only a few days before completion of the assessment, and the assessee's request for time to file objections was not properly accommodated. The Court held that tax adjudication requires a meaningful chance to place objections and supporting materials before an adverse determination is made, and found the Tribunal had wrongly treated the opportunity as sufficient. The assessment was therefore set aside and the matter remanded to the Assessing Officer for fresh consideration after hearing the assessee.

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Issues: Whether the assessee was afforded sufficient opportunity before finalisation of the block assessment and whether the assessment order was vitiated for breach of the principles of natural justice.

Analysis: The assessee was issued notice only a few days before completion of the assessment and sought time to respond. The assessment was nevertheless finalised without granting adequate opportunity. In tax adjudication, the assessee must be given a fair and effective chance to place objections and materials before the Assessing Officer before an adverse determination is made. The Court found that the procedure adopted did not satisfy this requirement and that the Tribunal had erred in treating the opportunity as sufficient.

Conclusion: The assessment was vitiated for violation of the principles of natural justice and was set aside, with the matter remanded to the Assessing Officer for fresh consideration after giving the assessee an opportunity to file objections.

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