Natural justice in reassessment: order quashed where the final basis differed from notice and opportunity to respond was inadequate.

A reassessment order that shifts from the ground stated in the revision notice and requires production of certificates without giving adequate opportunity is vitiated by breach of natural justice. The Madras High Court held that the discrepancy between the proposed basis of revision and the final reassessment, together with the assessee's inability to meet the adverse material, made the process unfair. As the assessee was willing to produce the required documents, the assessment had to be set aside and the matter remanded for fresh consideration after due notice and personal hearing.

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Issues: Whether the reassessment orders were liable to be quashed for inconsistency with the revision notice and for denial of adequate opportunity to produce the certificates required to claim concessional tax.

Analysis: The revision notice proposed to deny the concession on one footing, while the reassessment orders proceeded on a different footing requiring production of specified certificates. The discrepancy in the basis of proposed revision and the final reassessment, coupled with the absence of sufficient opportunity to furnish the certificates, rendered the assessment process unfair. Since the assessee expressed willingness to produce the required documents, the matter warranted reconsideration after due notice and personal hearing.

Conclusion: The reassessment orders were quashed and the matter was remanded for fresh consideration after granting adequate opportunity to the assessee.

Ratio Decidendi: An assessment order based on a ground not properly put to notice and passed without adequate opportunity to meet the proposed adverse material is vitiated for breach of natural justice and must be set aside for reconsideration.

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