TMI Blog2014 (8) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of the assessee under section 80-IB(10) of the Act. While re-examining the matter, the Assessing Officer shall also take into consideration the judgment of the Bombay High Court in Vandana Properties [2012 (4) TMI 54 - BOMBAY HIGH COURT] and any other material that may be brought to his notice by the assessee. The Assessing Officer shall reconsider the matter afresh and thereafter decide the same without being influenced by any of the observations made by the Administrative Commissioner in the impugned or this Tribunal in this order in accordance with law after giving reasonable opportunity of hearing to the assessee. - Decided against assesse. - I.T.A No. 215/Coch/2014 - - - Dated:- 1-8-2014 - Shri N.R.S. Ganesan and Shri Chandra Poojari, JJ. For the Appellant : Shri T.M. Sreedharan, Sr.counsel For the Respondent : Shri K.K. John, Sr DR ORDER N. R. S. Ganesan (Judicial Member).- This appeal of the assessee is directed against the order of the Administrative Commissioner, dated March 11, 2014, exercising his jurisdiction under section 263 of the Act for the assessment year 2009-10. 2. Shri T. M. Sreedharan, learned senior counsel for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a judicial proceeding under section 136 of the Income-tax Act, the application of mind shall be reflected in the order itself. Irrespective of whether an order is a judicial order or administrative order, the impugned order shall speak for itself especially when such an order is subject matter of appeal/ revision before the higher authorities. The reasons for a conclusion reached in the order shall contain in the order itself and the same cannot be substituted by way of an additional document or affidavit in the appellate or revisional proceedings. 4. In fact the Punjab and Haryana High Court had an occasion to examine this issue in CIT v. Sunil Kumar Goel [2005] 274 ITR 53 (P H) and after considering the judgment of the apex court in S. N. Mukherjee v. Union of India AIR 1990 SC 1984 has observed as follows (page 56) : In S. N. Mukherjee v. Union of India AIR 1990 SC 1984, a Con stitution Bench of the Supreme Court discussed the development of law on this subject in India, Australia, Canada, England and the United States of America and after making reference to a large number of judicial precedents, their Lordships culled out the following propositions (pag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y exercising quasi- judicial functions irrespective of the fact whether the decision is subject to appeal, revision or judicial review. It may, however, be added that it is not required that the reasons should be as elaborate as in the decision of a court of law. The extent and nature of the reasons would depend on particular facts and circumstances. What is necessary is that the reasons are clear and explicit so as to indicate that the authority has given due consideration to the points in controversy. The need for recording of reasons is greater in a case where the order is passed at the original stage. The appellate or revisional authority, if it affirms such an order, need not give separate reasons if the appel late or revisional authority agrees with the reasons contained in the order under challenge.' In Testeels Ltd. v. N. M. Desai [1970] 37 FJR 7 (Guj) [FB] ; AIR 1970 Guj 1, a Full Bench of the Gujarat High Court has made an extremely lucid enunciation of law on the subject and we can do no better than to extract some of the observations made in the decision. The same are (headnote of AIR 1970 (Guj)) : 'The necessity of giving reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d its attention to the language of sections 271D and 271E of the Act in conjunction with other provisions of the same family and then decided by a reasoned order whether the respondent had been able to make out a case for deleting the penalty. The order passed by the Tribunal should have clearly reflected the application of mind by the learned members. 5. The apex court also had an occasion to consider this issue in Toyota Motor Corporation v. CIT [2008] 306 ITR 52 (SC). The apex court has observed as follows at page 53 of the ITR : We are not inclined to interfere with the impugned order of the High Court. The High Court has held that the Assessing Officer had disposed of the proceedings stating the penalty proceedings initiated in this case under section 271C read with section 274 of the Income- tax Act, 1961 are hereby dropped. Accordingly to the High Court, there was no basis indicated for dropping the proceedings. The Tribunal referred to certain aspects and held that the initiation of proceedings under section 263 of the Income-tax Act, 1961 (in short, 'the I.T. Act') was impermissible when considered in the background of the materials purportedly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the heart beat of every conclusion and without the same it becomes lifeless. (See Raj Kishore Jha v. State of Bihar AIR 2003 SC 4664). Even in respect of administrative orders Lord Denning M. R. in Breen v. Amalgamated Engineering Union [1971] All ER 1148 (CA) observed : 'The giving of reasons is one of the fundamentals of good administration'. Failure to give reasons amounts to denial of justice. Reasons are live links between the mind of the decision-taker to the controversy in question and the decision or conclusion arrived at. Reasons sub stitute subjectivity by objectivity. The emphasis on recording reasons is that if the decision reveals the 'inscrutable face of the sphinx, it can, by its silence, render it virtually impossible for the courts to perform their appellate function or exercise the power of judicial review on adjudging the validity of the decision. Right to reason is an indis pensable part of a sound judicial system ; reasons at least sufficient to indicate an application of mind to the matter before court. Another rationale is that the affected party can know why the decision has gone against him. One of the salutary requirements of n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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