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Issues:
- Revision petitions challenging assessment orders for three consecutive years under the Tamil Nadu Agricultural Income-tax Act, 1955. - Allegation of denial of effective opportunity to defend proceedings due to violation of the first proviso to section 34 of the Act. - Lack of acknowledgment for explanation sent by petitioner and subsequent passing of final orders without considering the explanation. - Requirement of a fair and reasonable opportunity of being heard before passing orders detrimental to the assessee's interest. Analysis: The judgment pertains to three revision petitions filed by the same petitioner challenging assessment orders for the years 1980-81, 1981-82, and 1982-83 under the Tamil Nadu Agricultural Income-tax Act, 1955. The Commissioner of Agricultural Income-tax initiated proceedings under section 34 of the Act, alleging errors in the calculation and determination of standard acres, leading to proposed cancellation of assessment orders and reassessment based on income for the respective years. The petitioner contended that the first proviso to section 34 was violated, as he was allegedly denied an effective opportunity to defend the proceedings. The petitioner claimed to have sent an explanation objecting to the proposals but could not produce acknowledgment or evidence of receipt by the Commissioner. The court acknowledged the importance of providing a fair hearing to the assessee before passing orders that could adversely affect their interests, as mandated by the first proviso to section 34 of the Act. Despite the absence of concrete evidence regarding the receipt of the petitioner's explanation, the court emphasized that the denial of the right to be heard should not be based solely on the lack of acknowledgment. The judgment highlighted the significance of adhering to principles of natural justice, ensuring that the assessee is given a genuine opportunity to present their case before any adverse order is issued. The court found that the Commissioner's order lacked clarity in demonstrating the errors committed by the Assessing Officer in the computation of standard acres. The judgment criticized the vague nature of the order and the absence of detailed explanation regarding the different calculation method adopted by the Commissioner. Consequently, the court concluded that the order passed by the Commissioner was not sustainable and needed to be set aside in the interest of justice. The assessee was directed to submit any explanation within four weeks, and the Commissioner was instructed to conduct fresh proceedings, affording the assessee a fair and reasonable opportunity to be heard before making any further decisions.
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