Non-speaking assessment orders can be set aside where the authority fails to specify required evidence and denies fair opportunity.

An assessment order that rejects the assessee's explanation without clearly specifying what additional evidence is required, and that reflects a non-speaking or non-application of mind approach, is vulnerable to writ correction under Article 226. A mere show-cause notice calling for objections is insufficient where the authority intends to rely on further material. The High Court set aside the assessment and remitted the matter for fresh consideration, directing that any fresh notice must specify the evidence required and that the assessee must be given an opportunity to reply and be heard.

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Issues: Whether the assessment order was liable to be set aside for want of application of mind and for not specifically calling upon the assessee to furnish the evidence required before confirming the tax demand.

Analysis: The assessment order recorded that the returns had been audited and transactions verified, yet it proceeded to reject the assessee's explanation on the ground that no evidence was produced, without indicating what further material was required. A mere show-cause notice calling for objections was held to be insufficient where the authority intended to rely on additional evidence. The writ jurisdiction under Article 226 of the Constitution of India was therefore invoked to correct the infirmity in the impugned order.

Conclusion: The assessment order was set aside and the matter was remitted for fresh consideration after serving a fresh show-cause notice, if so chosen, specifying the evidence required and after affording an opportunity of reply and personal hearing.

Final Conclusion: The assessee obtained partial relief, with the demand order annulled and the assessment directed to be redone in accordance with law.

Ratio Decidendi: Where an assessment is made without clearly specifying the additional evidence required from the assessee, and the order discloses a non-speaking or non-application of mind approach, the order is liable to be set aside and the matter remitted for fresh adjudication after due opportunity.

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