TMI Blog2014 (11) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... ord the reasons for its decision, is that such a decision is subject to the appellate jurisdiction of the court under article 136 of the Constitution as well as the supervisory jurisdiction of the High Courts under article 227 of the Constitution and that the reasons, if recorded, would enable this court or the High Courts to effectively exercise the appellate or supervisory power - a distinction has been drawn between ordinary courts of law and tribunals and authorities exercising judicial functions on the ground that a judge is trained to look at things objectively uninfluenced by considerations of policy or expediency whereas an executive officer generally looks at things from the stand point of policy and expediency. The then AO (Shri Bhopal Singh), the Additional Commissioner of Income Tax, Range-II, Muzaffarnagar and Shri Kundan Misra, the then Commissioner of Income Tax, Muzaffarnagar who passed the order dated 25.1.2008 have abdicated their duties - The Court in the exercise of supervisory jurisdiction under Articles 226 and 227 of the Constitution of India cannot be a mute spectator - Such actions on the part of the department not only bring disrepute to the department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l No.1153(Mds.) of 2009, dated 10-10- 2010 and also the decision of the Ahmedabad Bench of this Tribunal in ACIT (OSD) v. Parry Engineering Electronics (P.) Ltd in IT Appeal No.331 (Ahd.) of 2011 with CO No.44/Ahd/2012 order dated, 02-03-2012. The assessee filed copies of above two decisions of the Tribunal. 3. On the contrary, Smt. Latha V Kumar, the ld.DR submitted that the assessing officer has not discussed anything in the assessment order. The assessment order is silent about the depreciation on the windmill. Referring to the order of the administrative Commissioner, more particularly, at paragraph 4, the ld. representative submitted that the assessing officer has not considered the issue during the assessment proceedings and there is no discussion / query in respect of windmill depreciation. Therefore, the assessing officer without any application of mind / proper enquiry allowed the claim of the assessee; hence, the Administrative Commissioner has rightly invoked his jurisdiction u/s 263 of the Act. 4. We have considered the rival submissions on either side and also perused the material available on record. The proceeding before the Administrative Commissioner is a j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sory jurisdiction of the High Courts under article 227 of the Constitution and that the reasons, if recorded, would enable this court or the High Courts to effectively exercise the appellate or supervisory power. But this is not the sole consideration. The other considerations which have also weighed with the court in taking this view are that the requirement of recording reasons would (i) guarantee consideration by the authority; (ii) introduce clarity in the decisions; and (iii) minimize chances of arbitrariness in decision making. In this regard a distinction has been drawn between ordinary courts of law and tribunals and authorities exercising judicial functions on the ground that a judge is trained to look at things objectively uninfluenced by considerations of policy or expediency whereas an executive officer generally looks at things from the stand point of policy and expediency. Reasons, when recorded by an administrative authority in an order passed by it while exercising quasi-judicial functions, would no doubt facilitate the exercise of its jurisdiction by the appellate or supervisory authority. But the other considerations, referred to above, which have also weighed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarity, checks the introduction of extraneous or irrelevant considerations and excludes or, at any rate, minimizes arbitrariness in the decision-making process. Another reason which compels making of such an order is based on the power of judicial review which is possessed by the High Court under article 226 and the Supreme court under article 32 of the Constitution. These courts have the power under the said provisions to quash by certiorari a quasi-judicial order made by an administrative officer and this power of review can be effectively exercised only if the order is a speaking order. In the absence of any reasons in support of the order, the said courts cannot examine the correctness of the order under review. The High Court and the Supreme Court would be powerless to interfere so as to keep the administrative officer within the limits of the law. The result would be that the power of judicial review would be stultified and no redress being available to the citizen, there would be insidious encouragement to arbitrariness and caprice. If this requirement is insisted upon, then, they will be subject to judicial scrutiny and correction. If the order passed by the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke into account all the relevant aspects including the materials, if any, already placed by the assessee, and pass a reasoned order. 7. We also find that the Allahabad High Court in a recent unreported judgment expressed its shock and anguish the way in which the assessment orders and the revisional orders are being passed. In fact, the assessee, M/s Fateh Chand Charitable Trust in Writ Tax No.1629 of 2010 (judgment dated 27-05-2013) before the Allahabad High Court received donation of ₹ 5.23 crores. The assessing officer accepted the same without any enquiry and reasoning in the assessment order. The Commissioner of Income-tax initiated proceedings to cancel the registration u/s 12A of the Act. However, it was dropped without recording any reason. Subsequently, the case was reopened and notice was issued u/s 147 of the Act. The assessee challenged the notice issued for reopening the assessment by way of writ petition. While considering the wit petition, the Allahabad High Court expressed its shock and anguish on the way in which the orders are being passed by the income-tax authorities. In fact, the Allahabad High Court has observed as follows: 'The income tax aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zaffarnagar and Shri Kundan Misra, the then Commissioner of Income Tax, Muzaffarnagar who passed the order dated 25.1.2008 have abdicated their duties. The Court in the exercise of supervisory jurisdiction under Articles 226 and 227 of the Constitution of India cannot be a mute spectator. Such actions on the part of the department not only bring disrepute to the department but also encourage the dishonest assessees and promotes the nefarious activities which not only causes loss to revenue but also promotes dishonesty. An honest tax payer feels cheated. Let the matter be examined by the Chief Commissioner of Income Tax and appropriate departmental proceedings may be taken out against the erring officials. A copy of this judgment may also be sent to the Chairman of the Central Board of Direct Taxes for an appropriate action.' 8. In view of the above, the assessing officer has not applied his mind to the material available on record. Therefore, this Tribunal is of the considered opinion that the Commissioner has rightly exercised his jurisdiction u/s 263 of the Act. However, it is made clear that while completing the assessment consequent to the order of the Commissioner the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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