Prior notice and hearing are essential before assessment; order set aside for breach of natural justice.

An assessment order passed without prior notice and without giving the assessee an opportunity to file objections and be heard could not be sustained. The court noted that the challenge based on non-compliance with Rule 52 was not refuted, and held that absence of notice and hearing vitiated the assessment. The assessment order was set aside, while the respondent was permitted to restart proceedings in accordance with law by issuing notice, considering objections and then passing a fresh order after hearing the petitioner.

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Issues: Whether the assessment order could be sustained when it was passed without issuing prior notice and without affording an opportunity to file objections and be heard.

Analysis: The impugned assessment order was challenged on the ground that no prior notice had been issued as required under Rule 52. The respondent did not refute this contention. In the absence of prior notice and an opportunity of hearing, the assessment order could not be sustained. At the same time, the respondent was permitted to commence proceedings afresh in accordance with law by issuing notice and thereafter considering the objections and hearing the petitioner.

Conclusion: The assessment order was set aside, and the respondent was left free to issue a fresh notice and pass a fresh assessment order in accordance with law after hearing the petitioner.

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