Expanded remand for tax quantification allowed fresh determination of penalty and interest as consequential liabilities.

A remand for quantification of tax was widened because penalty and interest could not be decided before the original authority determined the tax liability afresh. The earlier penalty determination was premature, as consequential liability depended on the fresh tax computation and the affected party had to be given adequate opportunity of hearing. The remand was therefore enlarged to cover re-examination of the tax amount payable and, if any, the resulting penalty and interest, with the departmental appeals allowed by way of remand.

---

---

Issues: Whether the remand should be widened to enable fresh determination of the tax amount payable as well as the consequential liability, if any, towards penalty and interest.

Analysis: The matter had already been remanded for quantification of the tax payable, and the decision on penalty had been taken prematurely without keeping that issue open. Since liability to penalty and interest depended upon the fresh determination of tax by the original authority, the scope of remand required enlargement so that all consequential questions could be decided after affording adequate opportunity of hearing.

Conclusion: The remand was widened to include fresh consideration of the tax amount payable, penalty and interest, if any, and the departmental appeals were allowed by way of remand.

---