Ex parte tax order under section 73 set aside for fresh reply opportunity after bona fide non-response to notices.

An ex parte order confirming tax, interest and penalty under section 73 was set aside because the assessee had not filed a reply to the pre-intimation notice and show-cause notice, but the omission was accepted as due to bona fide reasons and sufficient cause. Applying a justice-oriented approach, the court restored the matter to the stage of reply, quashed the impugned order, and remitted the case to the assessing authority for fresh consideration in accordance with law, with an opportunity to file reply and supporting material.

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Issues: Whether the ex parte order confirming tax, interest and penalty under section 73 should be set aside and the matter remitted for fresh consideration on account of the petitioner not having filed a reply to the pre-intimation notice and show-cause notice.

Analysis: The petitioner had not submitted a reply to the notices or contested the proceedings before the assessing authority. The Court accepted the explanation that the omission was attributable to bonafide reasons and sufficient cause, and adopted a justice-oriented approach. In view of the absence of a reply and the request for one further opportunity, the Court found it appropriate to set aside the impugned order and restore the matter to the stage of reply to the show-cause notice.

Conclusion: The ex parte order was quashed and the matter was remitted to the assessing authority for reconsideration afresh in accordance with law, with an opportunity to the petitioner to file reply and supporting material.

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