Natural justice breach in assessment proceedings led to remand for fresh adjudication after hearing the taxpayer.

An assessment order under Section 143(3) was challenged on the ground that no show cause notice was issued and no opportunity was given to file a reply. That omission was treated as a patent breach of natural justice, and the availability of an alternative appellate remedy did not bar interference on these exceptional facts. The impugned assessment was set aside and the matter remanded for fresh adjudication after considering the taxpayer's reply and granting a hearing.

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Issues: Whether the assessment order passed under Section 143(3) of the Income-tax Act, 1961 was liable to be set aside for breach of natural justice, and whether the matter should be remanded for fresh assessment despite the availability of an appellate remedy.

Analysis: The assessment order was challenged on the ground that no show cause notice had been issued and no opportunity had been given to file a reply. That factual assertion was not denied. In the circumstances, the Court treated the omission as a patent violation of the principles of natural justice and held that the existence of an alternative remedy would not preclude interference in such exceptional facts. The impugned order was therefore set aside and the matter was sent back for fresh adjudication after considering the petitioner's reply and after giving an opportunity of hearing.

Conclusion: The assessment order was set aside and the matter was remanded to the assessing officer for fresh assessment in accordance with law after affording the petitioner an opportunity to reply and be heard.

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