Natural justice challenge to revised assessments failed, but conditional fresh objection opportunity was granted on payment compliance.

Where pre-revision notices were served and no objections were filed, a natural justice challenge to the revised assessment orders was not made out. The Madras HC nevertheless granted a conditional opportunity to contest the assessments afresh, subject to payment of 15% of the disputed tax for each assessment year within the stipulated time. On compliance, the assessment orders were to operate as show-cause notices, objections were to be received, personal hearing was to be afforded, and the assessment was to be redone in accordance with law.

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Issues: Whether the revised assessment orders were liable to be interfered with for breach of natural justice, and whether the assessee was entitled to a further opportunity to file objections and have the assessment reconsidered.

Analysis: The assessee had received pre-revision notices but did not file objections. In those circumstances, the challenge based on violation of natural justice was not accepted. At the same time, considering the submissions and the nature of the dispute, a further opportunity was granted on condition of payment of 15% of the disputed tax for each assessment year within the stipulated time. On compliance, the impugned assessment orders were to be treated as show-cause notices, objections were to be filed, personal hearing was to be afforded, and the assessment was to be redone in accordance with law.

Conclusion: The natural justice challenge failed, but the assessee was granted a conditional opportunity to contest the assessments afresh.

Ratio Decidendi: Where a pre-revision notice has been served and no objection is filed, a natural justice challenge to the assessment is not established, though the Court may grant conditional opportunity for reconsideration in the interests of justice.

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