Natural justice invalidates reassessment where no pre-assessment notice was served, leading to quashing and fresh proceedings.

Reassessment orders were held unsustainable where no pre-assessment notice had been served on the assessee before completion of assessment. The absence of notice was admitted on verification of the records and was treated as a violation of natural justice going to the root of the assessment process. The court therefore quashed the impugned orders and remitted the matter for fresh assessment, requiring due notice, an opportunity to file objections, and a chance to produce documents.

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Issues: Whether the reassessment orders could be sustained when no pre-assessment notice had been served on the assessee, and whether the matter required remand for fresh consideration.

Analysis: The challenge was confined to the absence of service of pre-assessment notice before passing the assessment orders. On verification of the assessment records, the respondent fairly conceded that no such notice had been served. The Court therefore held that the orders suffered from violation of the principles of natural justice and could not be sustained. Since the defect went to the root of the assessment process, the proper course was to set aside the orders and remit the matter for fresh proceedings after issuing notice and granting an opportunity to file objections and produce documents.

Conclusion: The impugned assessment orders were quashed and the matters were remitted to the respondent for fresh assessment after due notice and opportunity to the petitioner.

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