Natural justice in assessment proceedings: order set aside for ignoring the reply and denying a proper hearing.

The Madras HC set aside an assessment order where the authority proceeded on the mistaken basis that no reply had been filed and no hearing attended, despite the petitioner having submitted objections to the show cause notice. The Court found the denial of a proper opportunity of hearing unsustainable and directed reconsideration after allowing the petitioner to place additional objections. It also directed that the bank attachment be lifted forthwith.

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Issues: Whether the assessment order was liable to be set aside for non-consideration of the reply filed by the petitioner and denial of a proper opportunity of hearing.

Analysis: The impugned order proceeded on the basis that no reply had been filed and no hearing had been attended, although the petitioner had submitted a reply to the show cause notice. The respondents also indicated that the assessment could be redone after affording a reasonable opportunity of hearing. In view of these circumstances, the order was not sustained and the matter was directed to be reconsidered after allowing the petitioner to place additional objections.

Conclusion: The impugned order was set aside and the matter was remitted for fresh consideration after granting a reasonable opportunity of hearing. The bank attachment was directed to be lifted forthwith.

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