Natural justice in assessment proceedings requires personal hearing, disclosure of relied-upon materials, and fresh consideration when procedure is ignored.

Assessment orders passed without an effective personal hearing and without compliance with the governing circular and natural justice could not be sustained. The court noted that the assessee was not given a hearing, relied-upon documents were not furnished, and the required pre-finalisation procedural safeguards were not followed. The impugned orders were therefore quashed and the matters remitted for fresh assessment after supplying the materials relied on and affording a proper personal hearing.

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Issues: Whether the impugned assessment orders were liable to be quashed for want of personal hearing and for non-compliance with the governing circular, and whether the matter was required to be remitted for fresh consideration.

Analysis: The assessments were made after pre-assessment notices, but the petitioner was not called for a personal hearing before the impugned orders were passed. The governing circular required issuance of notice, consideration of objections, grant of personal hearing, and, where necessary, further procedural compliance before finalisation. The Court also noted the grievance that relied upon documents were not furnished and that the orders were passed without full compliance with the circular and the principles of natural justice. In these circumstances, the assessment orders could not be sustained and the proper course was to set them aside and direct a fresh decision after supplying the relied upon materials and giving an effective hearing.

Conclusion: The impugned assessment orders were quashed and the matters were remitted to the respondent for fresh assessment after furnishing the relied upon documents and affording personal hearing. The decision is in favour of the assessee.

Final Conclusion: The writ petitions succeeded, and the assessments were set aside for fresh adjudication in accordance with law and the applicable departmental circular.

Ratio Decidendi: An assessment order passed without granting the assessee an effective personal hearing and without complying with the mandatory procedural safeguards governing the assessment process is liable to be quashed and remitted for fresh consideration.

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