Tax demand exceeding show cause notice may require de novo assessment and fresh objections before finalisation.

An assessment order was challenged on the ground that the tax demand quantified in it exceeded the demand stated in the DRC-01 show cause notice. In the peculiar facts, the parties agreed to a fresh consideration on payment of a reduced amount. The assessing authority was directed to undertake a de novo exercise, treat the impugned assessment order as a show cause notice, and allow the taxpayer to file objections with supporting material within the prescribed time. If no objections were filed, the earlier assessment would stand restored.

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Issues: Whether the assessment order could be sustained where the tax demand exceeded the amount specified in the show cause notice, and whether the matter should be remanded for fresh consideration.

Analysis: The writ petition questioned the assessment order on the limited ground that the demand quantified in the order was higher than the demand stated in the notice issued under DRC 01. The parties also agreed that, in the peculiar facts, the matter could be sent back for fresh consideration on payment of a reduced amount. The Court accordingly directed a de novo exercise by the assessing authority, treating the impugned assessment order as a show cause notice and permitting objections with supporting material, failing which the earlier assessment would stand restored.

Outcome: The matter was remanded for fresh consideration, with the petitioner required to make the stipulated deposit and file objections within time.

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