Tax credit assessment must consider the taxpayer's reply and documents before issuing a reasoned fresh order.

An assessment order affecting tax credit cannot be sustained where the reply to the show cause notice and supporting documents were not considered. The matter was set aside and remitted for fresh consideration, with the competent authority required to examine any objections and documents filed within the stipulated time and then pass a speaking and reasoned order in accordance with law. The parties accepted that the claim could be reviewed afresh on a renewed response, making proper consideration of the record the decisive legal requirement.

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Issues: Whether the impugned assessment order was liable to be set aside for non-consideration of the petitioner's reply and supporting documents, with the matter to be reconsidered by the competent authority.

Analysis: The petitioner's alternative prayer was not pressed. The remaining grievance was that the reply to the show cause notice and the accompanying documents had not been considered before passing the impugned order. The parties also accepted that the matter could be examined afresh by the competent authority on a fresh response, if filed, and that the authority should decide the claim by a speaking and reasoned order within a fixed time.

Conclusion: The impugned order was set aside and the competent authority was directed to consider the objections and documents, if filed within the stipulated time, and pass a speaking and reasoned order in accordance with law.

Ratio Decidendi: An order affecting tax credit cannot be sustained where the reply and supporting material filed in response to the notice have not been considered, and the matter must be decided afresh by a reasoned order after such consideration.

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