Assessment orders may be quashed and remitted for fresh consideration where a potentially sustainable case is shown, subject to pre-deposit.

An assessment order challenged on merits may be quashed and remitted for fresh consideration where the assessee indicates a potentially sustainable case and seeks an opportunity to substantiate its reply. Delay and limitation objections, including reliance on an expired statutory appeal remedy, do not necessarily prevent such relief if the court chooses to exercise discretion. To balance the revenue's interest, the court may impose a protective pre-deposit condition before directing the assessing authority to reconsider the matter on merits.

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Issues: Whether the impugned assessment order was liable to be quashed and the matter remitted for fresh consideration on merits; whether the petitioner could be directed to make a partial deposit as a condition for such relief.

Analysis: The assessment order was challenged after the petitioner alleged that there was no mismatch between the returns and that other issues could be substantiated if given an opportunity. The respondent opposed the writ petition on the ground of delay and limitation, relying on the availability and expiry of the statutory appellate remedy. The Court found that the petitioner may have a case on merits and exercised discretion to grant relief, while balancing the revenue interest by requiring a deposit of 25% of the disputed tax and directing a fresh decision by the assessing authority after considering the petitioner's reply.

Conclusion: The impugned order was quashed and the matter was remitted to the first respondent for fresh adjudication on merits, subject to deposit of 25% of the disputed tax within the stipulated time.

Final Conclusion: The writ petition succeeded only to the extent of setting aside the assessment order and securing a fresh consideration, while preserving the revenue's interest through a mandatory deposit condition.

Ratio Decidendi: Where an assessee demonstrates a potentially sustainable case on merits, the Court may, despite objections based on delay and limitation, quash the assessment and remit the matter for fresh adjudication subject to a protective pre-deposit.

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