Natural justice in appellate proceedings requires hearing the assessee before disposal; order set aside and remanded for fresh consideration.

An appellate order disposing of an appeal without hearing the assessee could not be sustained where the denial of hearing was prejudicial and contrary to natural justice. The distinction between consideration of a pre-deposit application under Section 35F and disposal of the appeal itself was material, and the appellate authority was required to reconsider the matter after hearing the assessee and proceed according to law. The impugned order was set aside and the matter remanded for fresh consideration.

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Issues: Whether the appellate authority could dispose of the assessee's appeal without granting an opportunity of hearing and whether the order required to be set aside and remanded for consideration of the application under Section 35F.

Analysis: The appellate order had been passed without hearing the assessee. The distinction between disposal of a pre-deposit application and disposal of the appeal itself was material. In the facts, the denial of hearing in the appeal was treated as prejudicial to the assessee, and the matter was required to be reconsidered by the appellate authority after hearing the application under Section 35F and proceeding according to law.

Conclusion: The impugned order was set aside and the matter was remanded to the appellate authority for fresh consideration after hearing the assessee.

Final Conclusion: The assessee succeeded in obtaining restoration of the matter before the appellate authority for decision in accordance with law after hearing.

Ratio Decidendi: An appellate order disposing of the appeal without granting hearing to the affected party cannot be sustained where such denial of hearing is prejudicial and the matter requires reconsideration in conformity with natural justice.

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