Conditional quashing of assessment order: fresh adjudication ordered after reply to notice and partial tax deposit.

An assessment order passed without an effective reply to notices or personal hearing may be quashed on conditions, with the matter restored for fresh adjudication after compliance. The court balanced the assessee's right to respond against the revenue's interest by requiring a reply to the show-cause notice and deposit of 25% of the disputed tax within thirty days, treating the impugned order as an addendum to the notice. On compliance, the respondent must pass fresh orders on merits after hearing the petitioner.

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Issues: Whether the impugned assessment order should be quashed on terms, with liberty to the respondent to pass fresh orders after the petitioner files a reply and deposits a portion of the disputed tax.

Analysis: The petitioner had not replied to the notices or appeared for personal hearing. The Court nevertheless found that in similar circumstances relief had been granted by quashing the order on terms. The Court therefore balanced the petitioner's opportunity to respond against the revenue's interest by directing deposit of 25% of the disputed tax in cash within thirty days and requiring a reply to the show-cause notice, treating the impugned order as an addendum thereto.

Conclusion: The impugned order was quashed on terms, subject to compliance with the deposit and reply conditions, and the respondent was directed to pass fresh orders on merits after hearing the petitioner.

Final Conclusion: The writ petition was disposed of by granting conditional relief and restoring the matter for fresh consideration on compliance with the stipulated conditions.

Ratio Decidendi: Where an assessment is passed without effective response to notices, the Court may quash it on conditions and require fresh adjudication after the assessee is given an opportunity to reply and comply with a deposit condition.

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