Natural justice in income-tax assessment: non-speaking order set aside for denial of personal hearing and fresh reconsideration ordered.

An assessment order under Sections 143(3), 143(3A) and 143(3B) of the Income-tax Act was set aside for breach of natural justice because the taxpayer had objected to the draft assessment and sought a personal hearing, but the final order was passed without any recorded hearing. The order was also treated as non-speaking, as it did not disclose adequate reasons. The Court held that interference was justified despite the availability of an appellate remedy, and directed the assessing authority to pass a fresh order in accordance with law after granting personal hearing within the stipulated time.

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Issues: Whether the assessment order passed under Sections 143(3), 143(3A) and 143(3B) of the Income-tax Act, 1961 was liable to be set aside for breach of natural justice and for being a non-speaking order, and whether the matter required fresh consideration after granting personal hearing.

Analysis: The assessment was challenged on the ground that the draft assessment was objected to, a request for personal hearing was made, and the final order was passed without affording such hearing. The record did not show that any opportunity of personal hearing had been granted. The impugned order was also found to be non-speaking. In view of these defects, interference was warranted notwithstanding the availability of the statutory appellate remedy.

Conclusion: The assessment order was set aside and the assessing authority was directed to pass a fresh order in accordance with law after granting personal hearing to the petitioner within the stipulated period.

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