Natural justice in assessment proceedings requires supply of relied-upon documents before a valid order can be sustained.

An assessment order based on relied-upon material cannot stand where the assessee is denied effective access to the documents and a meaningful opportunity to reply. The court found that the material had allegedly been served on a third person, while the assessee consistently claimed non-receipt, and there was no specific denial of that objection. Because the authority passed the order without ensuring supply of the relied-upon documents or granting an effective hearing, the assessment was quashed and the matter remitted for fresh consideration after disclosure of the material and a fresh reply.

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Issues: Whether the assessment order was liable to be set aside for breach of natural justice and the matter remitted for fresh consideration.

Analysis: The assessment was founded on documents said to have been served to a third person, while the assessee consistently asserted non-receipt of the material necessary to submit a reply. There was no specific denial of the non-service allegation, and the order was passed without ensuring supply of the relied-upon documents or giving an effective opportunity of hearing. In such circumstances, the assessment could not be sustained.

Conclusion: The assessment order was quashed and the matter was remitted to the authority to furnish the documents, receive a fresh reply, and pass a fresh order after hearing the assessee.

Ratio Decidendi: An assessment order based on relied-upon material cannot stand where the assessee is denied effective access to such material and a meaningful opportunity of hearing.

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