Natural justice in tax assessment: order quashed where hearing was fixed before the reply deadline, denying effective response.

An assessment order under Section 73 could not be sustained where the show cause notice fixed the reply date after the scheduled personal hearing, leaving no effective opportunity to respond before adverse adjudication. The court treated this as denial of meaningful hearing and held that the order had been passed ex parte in breach of natural justice. The impugned order was quashed and set aside, and the petitioner was allowed to submit a fresh reply, followed by a fresh hearing and a fresh order in accordance with law.

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Issues: Whether the assessment order passed under Section 73 could be sustained when the notice fixed the date of hearing before the last date for filing reply, resulting in no effective personal hearing to the petitioner.

Analysis: The show cause notice fixed 22.06.2024 as the reply date but scheduled personal hearing for 19.06.2024, which meant that the petitioner was denied a meaningful opportunity to respond before the matter was decided. The order was therefore passed ex parte and in breach of the requirement of hearing before adverse adjudication.

Conclusion: The impugned order was quashed and set aside, and the petitioner was permitted to file a fresh reply followed by a fresh hearing and a fresh order in accordance with law.

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