Natural justice in assessment proceedings bars new TDS liability from being added in the final order without prior notice.

A processing-charges liability said to attract TDS could not be sustained when it was raised for the first time in the final assessment order without having been included in the show-cause notices. The court reiterated that a charge not put to notice cannot be introduced at the final stage, because the assessee must be given a fair opportunity to respond to every material issue on which the department relies. The assessment order was therefore held unsustainable and set aside, and the matter was remitted for reconsideration after receipt of the assessee's reply.

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Issues: Whether an assessment order could sustain when the liability towards processing charges alleged to be liable for TDS was first introduced in the final order without being raised in the show cause notices.

Analysis: The disputed addition concerning processing charges liable for TDS was not part of any of the notices issued to the assessee, and no opportunity was given to meet that specific charge. A matter not put to notice cannot be introduced for the first time in the final order, as the assessee must be afforded an opportunity to respond to every material issue on which the Department proposes to act.

Conclusion: The impugned order was held unsustainable and was set aside, with the matter remitted to the respondent for reconsideration after receipt of the assessee's reply.

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