Personal hearing and disclosure of relied-on material are required before assessment to satisfy natural justice

When an assessee specifically requests a personal hearing after a show-cause notice indicates that such hearing may be availed, procedural fairness requires the authority to fix and communicate a hearing date before completing the assessment. The text states that the assessments were found contrary to natural justice because no personal hearing was granted and the authority proceeded only on the written reply. It also notes that reliance on web report material without furnishing its details to the assessee remained open for reconsideration in fresh proceedings, with the procedure to follow the earlier batch of cases. The assessment orders were set aside and the matter remanded for fresh assessment.

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Issues: Whether the assessment orders were liable to be set aside for failure to grant personal hearing and for reliance on web report material without furnishing its details to the assessee.

Analysis: The assessee had specifically sought personal hearing after the show-cause notice indicated that an opportunity of hearing could be availed. The assessment authority did not communicate any date for personal hearing and proceeded to complete the assessments on the basis of the reply already filed. The departmental circular and the earlier Division Bench ruling recognize that when personal hearing is specifically requested, the opportunity of showing cause must include such hearing in the interest of procedural fairness. The complaint regarding reliance on web report material was also left open for consideration in the fresh assessment, with directions to follow the procedure already indicated in the earlier batch of cases.

Conclusion: The assessment orders were held to be contrary to natural justice and were set aside, with remand for fresh assessment after granting personal hearing and following the prescribed procedure regarding web report reliance.

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