Natural justice in assessment proceedings: denial of relevant documents vitiated the process and required fresh consideration.

Assessment orders were set aside for breach of natural justice where the assessee was denied access to documents in the department's possession that were needed to support claims relating to branch transfer and exhibition activity. The requested materials were not furnished despite a request and adjournment, which materially prejudiced the assessee's ability to present its case and undermined the fairness of the assessment process. The availability of an alternative appellate remedy did not cure the procedural defect. The assessments were therefore restored for fresh consideration after supply of the relevant documents.

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Issues: Whether the assessment orders were vitiated for breach of natural justice because the assessee was denied access to documents in the department's possession and, for that reason, the orders deserved to be set aside with a fresh assessment.

Analysis: The assessment-related documents needed to support the assessee's claim for branch transfer and exhibition activity were in the possession of the department. Despite a request for those documents and an adjournment, they were not furnished before completion of the assessments. The absence of those materials materially prejudiced the assessee's ability to establish its case and affected the fairness of the decision-making process. The existence of an alternative appellate remedy did not cure the procedural infirmity in the assessment process.

Conclusion: The assessment orders were set aside for breach of natural justice and the assessment proceedings were restored for fresh consideration after supplying the relevant documents to the assessee.

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