Consideration of revision evidence required before sustaining an ex parte assessment; de novo assessment follows after a fair hearing.

Documentary evidence filed in revision proceedings, including a cash-transaction summary, appointment letter and delivery challans, must be considered before rejecting the explanation for cash deposits. The notes state that the revision order did not address that material or record adverse findings, while the underlying assessment was ex parte and the Assessing Officer had not previously considered the evidence. They describe the revision order, ex parte assessment, consequential demand and penalty notices, and bank-account attachment notice as having been set aside, with de novo assessment directed after considering the evidence and allowing a reasonable hearing opportunity.

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Issues: Whether the revision order and the ex parte assessment could be sustained when the documentary evidence filed during revision proceedings was not considered.

Analysis: The revision record contained a cash-transaction summary, appointment letter and delivery challans supporting the explanation for the cash deposits. The revision order merely stated that no reliable evidence had been furnished, without addressing those documents or recording adverse findings on them. As the assessment had been made ex parte and the material placed in revision had not been before the Assessing Officer, fresh consideration by the Assessing Officer was warranted with a reasonable opportunity of hearing.

Conclusion: The revision order and ex parte assessment, together with consequential demand, penalty notices and bank-account attachment notice, were set aside and the matter was remanded for de novo adjudication after considering the evidence and submissions. The issue was decided in favour of the assessee.

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