Speaking order requirement in reassessment: authority must consider existing objections on record before passing a fresh decision.

Where an assessment is remitted for fresh consideration, the authority must address the assessee's existing objections on record and pass a reasoned speaking order; failing to do so renders the order vulnerable to judicial review. The Madras High Court found that the revised assessment merely noted absence of a further reply to the later notice, without dealing with the earlier defence material already on file. The impugned order was therefore quashed and the matter remitted for fresh consideration, with one final opportunity to respond and a fresh reasoned decision to be passed in accordance with law.

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Issues: Whether the revised assessment order was liable to be quashed as a non-speaking order for failure to consider the assessee's earlier reply and whether the matter required remand for fresh consideration.

Analysis: The writ petition arose after an earlier round in which the assessment had already been set aside with directions to afford a personal hearing and pass a fresh speaking order. In the subsequent round, although a fresh notice was issued, the assessee's earlier objections already formed part of the record and were required to be considered. The impugned order merely recorded that no further documents or reply had been filed in response to the later notice and confirmed the earlier proposal, without dealing with the existing defence material or giving a reasoned determination on merits. In these circumstances, the order lacked the reasoning expected of a speaking order.

Conclusion: The impugned order was quashed and the matter was remitted to the respondent for fresh consideration after granting one final opportunity to reply.

Final Conclusion: The assessee obtained relief against the assessment order, but the tax dispute was sent back for a fresh, reasoned decision in accordance with law.

Ratio Decidendi: Where an assessment is required to be reconsidered after remand, the authority must deal with the existing objections on record and pass a reasoned speaking order; failure to do so renders the order vulnerable to judicial review.

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