High Court emphasizes procedural fairness in tax assessment, sets conditions for lifting bank account attachment

The High Court directed the appellant to treat assessment orders as show cause notices, submit objections, and provide a personal hearing before redoing the assessment. The Court emphasized procedural fairness and refrained from coercive action until completion of the assessment. The appellant paid 15% of disputed tax and submitted objections but faced financial distress due to bank account attachment without fresh assessment orders. The Court remitted the matter for reconsideration, setting conditions for lifting the attachment. The final judgment reduced the payment amount required to lift the attachment, balancing justice with the appellant's financial difficulties.

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Issues involved:
1. Assessment orders passed without notice
2. Disputed tax payments and objections filing
3. Bank account attachment without fresh assessment orders

Analysis:

Issue 1: Assessment orders passed without notice
The appellant contended that assessment orders were issued without prior notice, leading to objections and legal challenges. The High Court directed the appellant to treat the orders as show cause notices, submit objections, allow inspection, and provide a personal hearing before redoing the assessment in compliance with the law. The Court emphasized refraining from coercive action until the assessment was completed, ensuring procedural fairness.

Issue 2: Disputed tax payments and objections filing
Following the directions in the writ proceedings, the appellant paid 15% of the disputed tax and submitted objections. However, the appellant highlighted the lack of a personal hearing as directed by the court. Subsequently, the bank account attachment by the first respondent without fresh assessment orders caused financial distress to the appellant, impacting their business operations significantly.

Issue 3: Bank account attachment without fresh assessment orders
The first respondent attached the appellant's bank account based on previous orders without passing fresh assessment orders. The appellant challenged this action through a writ petition, leading to the court's decision to remit the matter for reconsideration. The Court set conditions for depositing a specified amount within a deadline to lift the attachment, emphasizing the importance of fair assessment proceedings and providing an opportunity to be heard.

In the final judgment, the High Court modified the order by reducing the payment amount required to lift the bank attachment, considering the appellant's financial difficulties. The Court aimed to balance the interests of justice by ensuring a reasonable payment timeframe while upholding the necessity for proper assessment procedures and fair treatment of the appellant.

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