Reasonable opportunity in faceless assessment was denied by an overnight notice, leading to setting aside and remand.

A show cause notice-cum-draft assessment order issued late at night, with only about 24 hours to respond under the faceless assessment procedure, was treated as not providing a real and reasonable opportunity of hearing. Because the assessee had insufficient time to notice the communication, prepare a reply, and seek a hearing, the resulting assessment process was found procedurally unfair. The assessment orders were set aside and the matter was remanded for fresh consideration after granting adequate time to respond in accordance with law; the connected penalty orders were kept in abeyance until reassessment is completed.

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Issues: Whether a show cause notice-cum-draft assessment order issued late at night granting only about 24 hours to respond under the faceless assessment procedure afforded a reasonable opportunity of hearing, and whether the resulting assessment and penalty orders were liable to be set aside and remanded.

Analysis: The notice was issued in the night and required a reply by the end of the next day, leaving very little time for the assessee to notice the communication, prepare a response, and seek a hearing. In the facts of the case, such a short interval was treated as insufficient to constitute a meaningful opportunity to respond before finalising the assessment. The Court therefore interfered with the assessment process and directed that the matter be reconsidered after granting sufficient time to answer the notice in accordance with law.

Conclusion: The impugned assessment orders were set aside and the matter was remanded for fresh decision after giving adequate time to respond to the notices; the connected penalty orders were kept in abeyance till the reassessment is completed.

Ratio Decidendi: A show cause notice issued so close to finalisation that it does not afford a real and reasonable opportunity to respond violates the requirements of fair procedure and warrants setting aside of the resulting order with remand for fresh consideration.

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