Unsustainable turnover comparison led to remand, with fresh hearing granted and bank attachment lifted after conditional deposit.

An assessment order based on comparing turnover for a single month with the counterparty's annual return was treated as unsustainable. Although the taxpayer had been issued notice and multiple opportunities, it did not respond to the notice or show-cause notice. The matter was remitted for fresh consideration with notice and personal hearing, subject to deposit of 10% of the disputed tax demand within the stipulated time, and the consequential bank attachment was raised.

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Issues: Whether the assessment order was liable to be quashed for breach of natural justice and unsustainable comparison of turnover, and whether the consequential bank attachment could stand.

Analysis: The impugned assessment compared turnover reflected in a single month with the annual return of the counterparty, rendering the comparison unsustainable. At the same time, the petitioner had been issued notice and afforded multiple opportunities, but failed to respond to the notice and the show cause notice. In the circumstances, the matter warranted interference by way of remand on terms, with an opportunity to file a reply and be heard afresh.

Conclusion: The assessment order was quashed subject to remittance of 10% of the disputed tax demand within the stipulated time, the matter was remitted for fresh consideration after notice and personal hearing, and the bank attachment was raised as a consequence.

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