Appeals allowed; assessment set aside for lack of fair hearing, remand for fresh assessment after proper hearing

The SC allowed the appeals, finding the assessment order invalid because the assessee was not given a proper opportunity to be heard. The Court held that the defect in the assessment could not be cured by adducing evidence later before appellate forums; the assessment must be made after a fair hearing. The SC set aside the impugned assessment, the Commissioner (Appeals) and Tribunal orders, and remanded the matter for fresh assessment after affording the assessee a proper opportunity of hearing.

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The Supreme Court judgment found that the Income-tax Officer did not give the assessee a proper opportunity to be heard. The Court set aside the assessment order and remanded the matter for fresh assessment. The appeals were allowed, and no costs were awarded.

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