Natural justice in assessment: non-disclosure of benchmark yield basis invalidated the orders and required fresh hearing.

Assessment orders were set aside where the assessee was not informed of the source and basis for fixing the 94.5% standard yield benchmark. The Court found that the record did not show any response to the assessee's request for the material relied on, and the orders did not disclose that such material had been furnished. This amounted to a denial of an effective opportunity to object and breached natural justice. The matters were remanded to the Assessing Authority to disclose the source and details of the material used for the benchmark and to hear the assessee's objections before passing fresh orders.

---

---

Issues: Whether the assessment orders were liable to be set aside for violation of principles of natural justice on account of non-disclosure of the basis for fixing the standard yield at 94.5% and denial of an effective opportunity to object.

Analysis: The petitioner had sought the source and basis for fixing the benchmark yield, and the record did not disclose any reply by the Assessing Authority to that enquiry. The assessment orders did not demonstrate that the petitioner was furnished the material on which the benchmark was founded. In these circumstances, the petitioner was denied an effective opportunity to meet the basis of the proposed assessment.

Conclusion: The assessment orders were set aside and the matters were remanded to the Assessing Authority to disclose the source and details of the material relied on for fixing the 94.5% benchmark and to afford the petitioner an opportunity to file objections before passing fresh orders.

---