Personal hearing before adverse assessment is mandatory when specifically sought; limitation cannot justify denial of natural justice.

An assessment order passed under Section 73 without granting a personal hearing was held unsustainable where the assessee had specifically requested one in reply to the show-cause notice. The court applied the principles of natural justice and held that, once a hearing is sought, the authority must afford that opportunity before passing an adverse order. The plea that limitation was expiring did not excuse the denial, because a short date could have been fixed. The assessment order was quashed and set aside in favour of the assessee.

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Issues: Whether an assessment order passed under Section 73 without affording a personal hearing after the assessee specifically sought one in the reply to the show-cause notice could be sustained.

Analysis: The show-cause notice did not provide for any scheduled personal hearing, and the assessee specifically indicated in the reply that a hearing was required before a decision was taken. Once such a request was made, the authority was obliged to grant an opportunity of hearing. Passing the assessment order on the same day as the reply, without hearing the assessee, amounted to a breach of natural justice. The plea that limitation was expiring did not justify denial of hearing, since a short date could have been fixed.

Conclusion: The assessment order was unsustainable and was quashed and set aside in favour of the assessee.

Ratio Decidendi: Where a reply to a show-cause notice specifically seeks personal hearing, denial of such hearing before passing an adverse order violates the principles of natural justice, and limitation cannot excuse that omission.

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