Reasonable opportunity in tax adjudication: assessment order set aside and remitted for fresh consideration with additional documents.

The Madras HC set aside the assessment order for denial of a reasonable opportunity, noting that the petitioner's reply was on record but supporting documents had not been uploaded. Although the petitioner later produced the invoice and contended that purchase of the commercial vehicle was for business purposes and outside the scope of section 17(5), the Court held that the interests of justice required one further opportunity to place the material before the authority. The matter was remitted for fresh adjudication after reasonable opportunity and personal hearing, subject to payment of 10% of the disputed tax demand.

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Issues: Whether the impugned assessment order was liable to be set aside for denial of reasonable opportunity and whether the matter should be remitted for fresh consideration.

Analysis: The petitioner's reply to the show cause notice was on record, but no supporting documents had been uploaded along with it. The impugned order was nevertheless challenged on the footing that the purchase of the commercial vehicle was for business purposes and outside the scope of section 17(5). The invoice was later produced, and the Court found that the interests of justice required one more opportunity to place the supporting material before the authority.

Conclusion: The impugned order was set aside and the petitioner was granted an opportunity to file additional documents on payment of 10% of the disputed tax demand, followed by a fresh adjudication after reasonable opportunity and personal hearing.

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