Reasonable opportunity in tax assessment justifies remand when a taxpayer shows a plausible need for further time.

A taxpayer was found entitled to a further opportunity to contest a tax demand on merits where additional time to reply to the show cause notice was sought on account of an audit and later supported by medical records. Although notices and personal hearings had been given over several months, the court held that the circumstances justified setting aside the assessment order and remanding the matter for reconsideration. The fresh opportunity was made conditional on deposit of 10% of the disputed demand and filing of a reply within three weeks, with a corresponding right to hearing.

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Issues: Whether the assessment order should be set aside for want of reasonable opportunity and the matter remanded for fresh consideration.

Analysis: The petitioner sought additional time to reply to the show cause notice on account of an ongoing tax audit and later the ill health of the petitioner's father. The materials showed that notices and personal hearings had been offered over a period of months, but the petitioner had also produced medical records while seeking further time. In these circumstances, the petitioner was held entitled to another opportunity to contest the tax demand on merits, though on terms.

Conclusion: The impugned assessment order was set aside and the matter was remanded for reconsideration, subject to deposit of 10% of the disputed tax demand within three weeks and submission of a reply within the same period.

Ratio Decidendi: Where a taxpayer has not effectively responded to the show cause notice but later demonstrates a plausible need for further time, the assessment may be set aside and remanded to afford a reasonable opportunity of hearing, including personal hearing, on terms.

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