Natural justice in ex parte assessments: inadequate opportunity to be heard led to setting aside and remand for fresh assessment.

Ex parte assessments were found untenable where the assessee was not given adequate opportunity of hearing. The Tribunal noted that sufficient time had not been allowed after the assessee returned to India to prepare and file the returns, and that the representative could not furnish the required information earlier. The refusal to grant further time was treated as a denial of natural justice. The assessments were set aside and the matter was remitted to the assessing authority for fresh assessments after giving the assessee an effective opportunity to be heard.

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Issues: Whether the ex parte assessments were sustainable in the absence of adequate opportunity of being heard to the assessee.

Analysis: The delay in filing the appeals was condoned and the appeals were taken up on merits. On the material before it, the Tribunal found that the assessee had not been granted sufficient time after her return to India to prepare and file the returns, and that the representative had not been in a position to furnish the necessary information earlier. The refusal to grant further time was held to have denied an adequate opportunity of hearing, rendering the ex parte assessments untenable.

Conclusion: The ex parte assessments were set aside and the matter was remitted to the assessing authority for fresh assessments after giving the assessee adequate opportunity of being heard.

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