Effective opportunity in assessment proceedings justified remand for fresh consideration and de novo assessment.

The Madras HC held that although the assessee had been given opportunities during assessment and the Assessing Authority was justified in proceeding after repeated adjournment requests, the reconciliation material later filed showed that one further effective opportunity was warranted in the interests of substantial justice. The impugned assessment orders and orders rejecting rectification were therefore interfered with, and the matter was remitted for de novo assessment after hearing the assessee and examining the materials to be produced. The earlier orders were left without effect subject to the assessee's appearance and participation in the fresh proceedings.

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Issues: Whether the assessment orders and the orders rejecting rectification applications were liable to be set aside for denial of an effective opportunity to place material before the Assessing Authority.

Analysis: The petitioner had been given opportunities during assessment, but the matter showed repeated requests for adjournment on the ground that supporting material was unavailable. The Court found no fault in the Assessing Authority's decision to proceed when a further extension was sought. At the same time, the reconciliation material filed with the rectification applications indicated that the petitioner should be afforded one more opportunity in the interests of substantial justice. The impugned orders were therefore interfered with only to enable a fresh consideration after hearing the petitioner and examining the materials to be produced.

Conclusion: The impugned assessment and rectification orders were set aside and the matter was remitted for de novo assessment after granting the petitioner an effective opportunity of hearing.

Final Conclusion: The petitions succeeded to the extent of securing a fresh assessment, with the earlier orders left without effect unless the petitioner failed to appear.

Ratio Decidendi: Where a taxpayer is denied one more effective chance to substantiate the case with available materials, the assessment may be set aside and the matter remanded for de novo consideration in the interests of substantial justice.

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