Fresh assessment on remand cannot ordinarily be burdened with a pre-deposit condition absent justification.

When an assessment is remitted for fresh consideration after setting aside the original order, a pre-deposit condition is ordinarily unwarranted if the assessee is being given a fresh opportunity to file objections and participate in the proceedings. The Madras HC held that a remand intended to cure a procedural defect and enable reconsideration on merits should not, without justification, be burdened with a monetary prerequisite. The condition requiring deposit of 15% of the disputed tax demand was therefore set aside, and the assessment was left to be redone after hearing the assessee.

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Issues: Whether the condition directing deposit of 15% of the disputed tax demand, while remitting the assessment for fresh consideration, was sustainable.

Analysis: The assessment had been set aside for fresh adjudication and the assessee was given an opportunity to file objections and participate in the proceedings. The Court held that once the matter is remanded for reconsideration, especially in a case where the assessment is to be redone after hearing the assessee, imposing a monetary pre-condition is unwarranted. Relying on earlier decisions, the Court held that a remand intended to cure the defect in the original assessment should not be burdened with a deposit requirement unless justified by the facts and law.

Conclusion: The condition requiring deposit of 15% of the tax demand was set aside and the assessee was permitted to file objections and have the assessment redone on merits.

Final Conclusion: The writ appeal succeeded only to the extent of removing the pre-deposit condition, while the matter was retained for fresh assessment after hearing the assessee.

Ratio Decidendi: A monetary condition should not ordinarily be imposed as a prerequisite for fresh adjudication when an assessment is remanded to cure a procedural defect and afford an effective opportunity of hearing.

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