Conditional setting aside of assessment order granted fresh hearing after partial tax deposit and consideration of objections

The Madras HC set aside a challenged assessment order that was said to travel beyond the show cause notice, ignore the taxpayer's submissions and prior payments, and duplicate liability. The court granted a fresh opportunity on a conditional basis: the taxpayer was to deposit 25% of the disputed tax, with amounts already paid adjusted towards that deposit, and to file objections within the stipulated time. On compliance, the assessment order was to be treated as a show cause notice, and the authority was required to consider objections and supporting materials after giving a reasonable hearing.

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Issues: Whether the impugned assessment order was liable to be set aside and the petitioner granted an opportunity to file objections after making a partial deposit of the disputed tax.

Analysis: The assessment order was challenged as travelling beyond the show cause notice, ignoring the petitioner's submissions and prior payments, and suffering from duplication of liability. Having regard to the petitioner's willingness to deposit 25% of the disputed tax and the respondent's lack of serious objection, the order was set aside and the petitioner was afforded an opportunity to have the matter reconsidered. The amount already paid was directed to be adjusted towards the required deposit. Upon compliance, the assessment order was to be treated as a show cause notice and objections with supporting materials were to be considered after granting a reasonable opportunity of hearing.

Conclusion: The impugned assessment order was set aside conditionally and the matter was remitted for fresh consideration after deposit of 25% of the disputed tax and filing of objections within the stipulated time.

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