Remand for fresh assessment on merits after effective hearing, with the notice-validity issue left closed in remand proceedings

The assessment was set aside and remanded for de novo adjudication on merits because the assessee had not been given an effective opportunity to place supporting material during the Covid-19 period. The earlier rectification order had already corrected the view on the validity of the notice, so that legal issue was not allowed to be reopened in the remand proceedings. The Assessing Officer was directed to reconsider the matter afresh, examine all relevant evidence, and afford a reasonable opportunity of hearing to the assessee in the interest of substantial justice.

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Issues: Whether the assessment proceedings should be set aside and the matter restored to the Assessing Officer for fresh adjudication on merits.

Analysis: The rectification order had already corrected the earlier view on the validity of the notice, and the assessment had been completed during the Covid-19 period when the assessee asserted that it had inadequate opportunity to produce supporting material. In these circumstances, and in the interest of substantial justice, the matter was fit to be sent back for fresh consideration on merits with a direction to afford effective opportunity to the assessee and to consider all relevant evidence.

Conclusion: The matter was remanded to the Assessing Officer for de novo assessment with a direction to re-adjudicate the issues afresh on merits after granting reasonable opportunity of hearing.

Final Conclusion: The impugned order was set aside and the dispute was restored for fresh assessment, while the prior legal issue on the notice was not permitted to be reopened in the remand proceedings.

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