Non-compliance with remand direction led to reassessment being set aside for failure to consider set-off claim.

An assessment order was set aside because the assessing authority did not comply with an earlier remand direction requiring de novo consideration of the assessee's claim for set-off after hearing objections. The remand order had specifically required fresh adjudication of that issue, but the impugned order omitted it entirely despite the assessee filing objections. The court treated this non-consideration as non-compliance with the judicial mandate and directed reconsideration afresh in accordance with law.

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Issues: Whether the impugned assessment order was liable to be set aside for failure to comply with the earlier remand direction to consider the assessee's claim of set-off and pass fresh orders.

Analysis: The earlier order had remitted the matter with a specific direction that the assessing authority should consider the question of set-off and decide the matter de novo after hearing the assessee. In the impugned order, that specific issue was not dealt with at all, despite the assessee having filed objections pursuant to the remand. The non-consideration of the remanded issue showed non-compliance with the earlier judicial direction.

Conclusion: The impugned order was set aside and the matter was directed to be reconsidered afresh in accordance with law.

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