Natural justice in assessment leads to remand where material records were ignored and proper hearing was denied.

The Tribunal condoned the delay in filing the appeal after accepting the assessee's affidavit and finding the explanation genuine on the facts presented. It then remanded the assessment for fresh consideration because the assessment record showed that books of account, bank statements and return-related documents had not been considered, and the assessee had not been given a proper opportunity before completion of the assessment. The Assessing Officer was directed to grant a hearing and consider the evidence to be produced, with the result that the appeal succeeded only to the extent of restoration for de novo adjudication in line with natural justice.

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Issues: (i) Whether the delay in filing the appeal before the Tribunal deserved to be condoned. (ii) Whether the assessment order required remand for fresh consideration on account of non-consideration of material records and denial of proper opportunity.

Issue (i): Whether the delay in filing the appeal before the Tribunal deserved to be condoned.

Analysis: The explanation for the delay was supported by an affidavit and the Tribunal found the explanation genuine on the facts placed before it.

Conclusion: The delay was condoned in favour of the assessee.

Issue (ii): Whether the assessment order required remand for fresh consideration on account of non-consideration of material records and denial of proper opportunity.

Analysis: The assessment record showed that books of account, bank statements and return-related documents were not considered, and the assessee had not been afforded a proper opportunity before the assessment was completed. The matter was therefore held fit for fresh adjudication with a direction to grant hearing and consider the evidence to be produced.

Conclusion: The matter was remanded for fresh consideration by the Assessing Officer in favour of the assessee.

Final Conclusion: The appeal succeeded only to the extent of restoration of the matter for de novo consideration, with the assessee being given an opportunity to place its evidence before the Assessing Officer.

Ratio Decidendi: Where material records are not considered and effective opportunity is denied, the matter may be remanded for fresh adjudication in accordance with natural justice.

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