Natural justice in assessment proceedings requires effective notice and hearing; delayed service justified setting aside the assessment order.

Delayed service of a notice can vitiate an assessment where the assessee is thereby denied a real opportunity to object and be heard. Here, the notice was served after the fixed hearing date, so the finding that no objections were filed or that the assessee failed to attend could not stand. The defect was held to strike at the root of fair procedure, and the assessment order was set aside. The matter was remitted for fresh assessment after granting due hearing and considering the petitioner's objections.

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Issues: Whether the assessment order was liable to be set aside for violation of natural justice on account of delayed service of notice and denial of effective opportunity of hearing.

Analysis: The notice dated 03.10.2016 was found to have been served only on 15.10.2016, whereas the personal hearing had been fixed on 14.10.2016. In that situation, the conclusion that the assessee had failed to file objections or attend the hearing could not be sustained. The defect went to the root of fair procedure and warranted interference.

Conclusion: The assessment order was set aside and the matter was remitted for fresh assessment after affording due opportunity of hearing and considering the objections of the petitioner.

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