Unreasoned assessment order and breach of natural justice led to quashing of demand notice and fresh reconsideration.

An assessment order passed under the Income-tax Act was held to be unreasoned and non-speaking because the assessee's objections and supporting documents were not properly considered. The court found that failure to deal with the material placed on record amounted to a breach of natural justice. As a result, the assessment order and consequential demand notice were quashed, and the matter was remitted for fresh consideration in accordance with law.

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Issues: Whether the assessment order and consequential demand notice were liable to be quashed for being an unreasoned and non-speaking order passed without proper consideration of the petitioner's objections and documents, and whether the matter should be remitted for fresh adjudication.

Analysis: The assessment order was passed under Section 143(3) read with Sections 144 and 147 of the Income-tax Act, 1961. The record showed that the petitioner had filed multiple objections and supporting documents, but these were not properly considered. The order was found to be unreasoned and non-speaking, and the failure to consider the material placed by the petitioner amounted to violation of natural justice.

Conclusion: The assessment order and consequential demand notice were quashed, and the matter was remitted to the respondent for fresh consideration in accordance with law.

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