Tax reassessment delay and natural justice pleas fail where delay is attributable to the assessee and prejudice is unproven

A delayed tax reassessment was not set aside because the delay was substantially attributable to the assessee's own conduct, including the pendency of intra-court appeals and failure to pursue them promptly. The Court held that the Revenue could not be blamed for the entire lapse of time, so the revised assessment orders were not interfered with on delay grounds. The natural justice challenge also failed because there was no reliable proof of a specific request for the D3 report, and the record showed that opportunities had been given and no prejudice was established. The revised assessment orders were upheld, subject to personal hearing and completion of reassessment in accordance with law.

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Issues: (i) Whether the revised assessment orders were liable to be interfered with on the ground of inordinate delay in passing them. (ii) Whether non-furnishing of the D3 report or assessment materials vitiated the revised assessment orders on the ground of violation of natural justice.

Issue (i): Whether the revised assessment orders were liable to be interfered with on the ground of inordinate delay in passing them.

Analysis: The delay was found to have been substantially caused by the appellant's own conduct, including the prolonged pendency of the intra-court appeals and the failure to take timely steps for their hearing. The earlier assessment history and subsequent proceedings showed that the Revenue could not be blamed for the entire lapse of time. In such circumstances, the long interval did not justify setting aside the revised assessments.

Conclusion: The challenge based on inordinate delay was rejected.

Issue (ii): Whether non-furnishing of the D3 report or assessment materials vitiated the revised assessment orders on the ground of violation of natural justice.

Analysis: The Court found no reliable proof that a specific request for the D3 report had been made and not complied with. The record also indicated that the appellant had been given opportunities and that the matter had already been dealt with by the writ Court. In the absence of a substantiated denial of material particulars causing prejudice, the plea of violation of natural justice was not accepted.

Conclusion: The challenge based on non-furnishing of the D3 report was rejected.

Final Conclusion: The revised assessment orders were upheld, and the appellant was directed to participate in the personal hearing so that the assessing authority could complete the reassessment and pass fresh orders in accordance with law.

Ratio Decidendi: A belated tax reassessment will not be interdicted for delay where the delay is materially attributable to the assessee's own conduct, and an alleged breach of natural justice will not succeed without proof of a specific unanswered request and resulting prejudice.

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