Natural justice in assessment proceedings: mechanical rejection of reply and denial of effective hearing justified remand for fresh adjudication.

An assessment order was set aside because the authority rejected the taxpayer's reply mechanically, without meaningful consideration of the supporting documents and without granting an effective personal hearing. The court held that such non-application of mind and denial of a fair opportunity breached natural justice, and the matter was remanded for fresh adjudication. The respondent was directed to issue notice, afford personal hearing, and pass a reasoned order on merits and in accordance with law.

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Issues: Whether the assessment order was liable to be set aside for want of effective opportunity of hearing and for being passed without proper application of mind, warranting remand for fresh consideration.

Analysis: The writ petition challenged the assessment order on the ground that the petitioner had filed replies with supporting documents, but the authority rejected them in a mechanical manner and proceeded without giving an effective personal hearing. The order merely recorded that the reply was not accepted, which indicated absence of meaningful consideration of the petitioner's defence. In these circumstances, the requirement of fair hearing and proper adjudication was not satisfied.

Conclusion: The assessment order was set aside and the matter was remanded to the respondent for fresh consideration after issuing notice, granting personal hearing, and passing a reasoned order on merits and in accordance with law.

Ratio Decidendi: An assessment order passed without meaningful consideration of the reply and without affording an effective opportunity of hearing is liable to be set aside and remanded for fresh adjudication in observance of natural justice.

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