Natural justice in tax assessment upheld: orders set aside, fresh hearing directed, and bank attachment raised.

Tax assessment orders passed without hearing the assessee on the merits of the tax proposals were set aside because the authority had not afforded a reasonable opportunity of contesting the demand. The court required a preconditioned remittance of 10% of the disputed tax demand for each order, allowed the assessee to file a reply to the show cause notice within the stipulated time, and directed the authority to consider that reply, grant a personal hearing, and pass fresh orders. The bank attachment was also raised.

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Issues: Whether the impugned tax assessment orders, passed without hearing the petitioner on the merits of the tax proposals, were liable to be set aside and the matter remitted for fresh consideration with an opportunity of hearing.

Analysis: The orders were found to have been issued without hearing the petitioner on the merits of the tax proposals. In view of the attachment of the petitioner's bank accounts and the need to afford an opportunity to contest the demand, the petitioner was required to make a preconditioned remittance of 10% of the disputed tax demand in respect of each order. The petitioner was also permitted to submit a reply to the show cause notice within the stipulated period, and the respondent was directed to consider the reply, grant a reasonable opportunity including a personal hearing, and then pass fresh orders.

Conclusion: The impugned orders were set aside, the matter was remitted for fresh adjudication after affording reasonable opportunity and personal hearing, and the bank attachment was raised.

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