Fair opportunity to respond was denied by ineffective notice service, requiring fresh assessment after personal hearing.

Failure to serve material assessment notices on the assessee's registered email addresses, coupled with ineffective service on a former auditor after resignation, denied a fair and effective opportunity to respond to proposed additions. The assessment was therefore completed in breach of principles of natural justice. The assessment order and consequential demand notice were set aside, with the matter restored for fresh adjudication after adequate opportunity and a personal hearing. The validity of service under Rule 127 was left open.

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Issues: Whether the assessment order was liable to be set aside for want of a fair and effective opportunity to respond to the proposed additions.

Analysis: The assessee's primary and secondary email addresses were registered on the income-tax portal, but the material notices were not sent to either address. Notices sent to the former auditor's email address were not effectively communicated after disputes arose and the auditor resigned. The assessment was consequently completed without an adequate opportunity for the assessee to submit its explanation and supporting documents, offending the principles of natural justice.

Conclusion: The assessment order and consequential demand notice were set aside in favour of the assessee, and the assessment was restored for fresh adjudication after affording an adequate opportunity and personal hearing. The issue concerning validity of service under Rule 127 was left open.

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