Overlapping assessment demand led to remand for fresh merits consideration after a later order had dropped the same issues.

An assessment order confirming tax, interest and penalties for the 2019-2020 period was found to overlap prima facie with a later assessment order covering the same period and identical issues, where the demand had been dropped. Because the impugned demand had been confirmed on the basis of non-response to the show cause notice, the matter was not finally sustained. The petitioner was directed to file a reply treating the impugned order as an addendum, and the respondent was required to reconsider the matter on merits and pass a fresh order.

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Issues: Whether the impugned assessment order confirming tax, interest and penalties for the tax period 2019-2020 could be sustained when there appeared to be an overlapping demand with a later assessment order, and whether the matter required fresh consideration.

Analysis: The impugned demand was based on non-response to the show cause notice, while a later assessment order concerning the same tax period and identical issues had dropped the demand. On a prima facie view, the confirmed demand in the impugned order overlapped with the demand dealt with in the later order. In view of this overlap, the petitioner was directed to file a reply treating the impugned order as an addendum, and the respondent was required to reconsider the matter on merits.

Conclusion: The matter was remitted to the respondent for passing a fresh order on merits, and the impugned order was not finally upheld.

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