Natural justice requires a real hearing; ex parte appellate dismissal after inadequate notice was set aside for fresh adjudication.

An appellate order passed after granting only a truncated and ineffective opportunity to respond was held unsustainable because it breached natural justice. The assessee was given successive notices with less than seven days for compliance, which did not amount to a real chance to produce evidence or contest the additions. The ex parte dismissal of the first appeals was therefore set aside, and the matters were remitted for de novo adjudication with a reasonable opportunity of hearing and fresh speaking orders.

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Issues: Whether the ex parte dismissal of the assessee's first appeals by the appellate authority, after granting only a short time to comply, violated the principles of natural justice and justified setting aside the orders with a remand for fresh adjudication.

Analysis: The appellate authority had issued successive notices allowing less than seven days for compliance. Such a truncated opportunity was treated as neither real nor reasonable, and therefore not an effective chance to present evidence or contest the additions. The requirement of fair hearing was held to be substantive and not a mere paper formality. Since the assessee was deprived of a meaningful opportunity to support the returns and grounds of appeal, the ex parte appellate orders were found unsustainable. The proper course was to restore the matters for fresh consideration and require separate speaking orders after granting effective hearing opportunities.

Conclusion: The ex parte appellate orders were set aside and the matters were remitted for de novo adjudication after granting the assessee a reasonable opportunity of hearing.

Ratio Decidendi: An appellate order passed without granting a real and reasonable opportunity of hearing, especially where the time allowed for compliance is too short to enable effective participation, violates natural justice and must be set aside for fresh adjudication.

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