Reasonable hearing before tax assessment is essential; order set aside and matter remanded for fresh consideration.

An assessment confirmed without affording the taxpayer a reasonable opportunity to respond and be heard may be set aside and remitted for fresh adjudication. The HC noted that the explanation for non-participation was not fully convincing, but the demand had been sustained without allowing the petitioner to contest it. Considering verification of payment of 10% of the disputed demand and for the limited purpose of enabling a reply, the impugned order was interfered with. The matter was remanded for reconsideration after verification of payment, filing of a reply, and grant of personal hearing before passing a fresh order.

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Issues: Whether the assessment order could be set aside for want of a reasonable opportunity of hearing and the matter remitted for fresh consideration.

Analysis: The petitioner complained that the tax demand had been confirmed without being heard. The Court noted that the explanation for non-participation was not fully convincing, but also observed that the demand was confirmed without affording the petitioner an opportunity to contest it. In view of the remittance of 10% of the disputed tax demand and for the limited purpose of enabling the petitioner to respond, the impugned order was interfered with and the matter was directed to be reconsidered after verification of the payment and after granting a reply and personal hearing.

Conclusion: The assessment order was set aside and the petitioner was given an opportunity to file a reply and contest the demand before a fresh order was passed.

Final Conclusion: The writ petition resulted in remand of the assessment proceedings with a direction to pass a fresh order after due opportunity to the petitioner.

Ratio Decidendi: An assessment confirmed without affording a reasonable opportunity of hearing may be set aside and remitted for fresh adjudication with personal hearing.

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