TMI Blog2005 (2) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... ecide the appeal afresh by assigning cogent reasons. - - - - - Dated:- 8-2-2005 - Judge(s) : G. S. SINGHVI., VINEY MITTAL. JUDGMENT The judgment of the court was delivered by G.S. Singhvi J.- In this appeal filed under section 260A of the Income-tax Act, 1961, (for short "the Act"), the Commissioner of Income-tax, Rohtak (appellant), has prayed for determination of the following questions of law: "(i) Whether, on the facts and in the circumstances of the case, the honourable Income-tax Appellate Tribunal was right in law in confirming the order of the learned Commissioner of Income-tax (Appeals), who deleted the addition of Rs. 1,38,860 made on account of value of "bardana" used for storing "churi" and "korma"? (ii) Whether, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of an assessee who was doing export as well as other business in India. It would, therefore, appear that the Assessing Officer was not justified in overlooking the provisions of sub-section (1) and straightaway resorting to sub-section (3)(b) of section 80HHC. The Assessing Officer has himself mentioned in his order referred to in para. 7 that the deduction at the rate of 4 per cent, of the net foreign exchange realisation of the appellant at Rs. 11,98,16,475 works out to Rs. 47,92,659. In view of this, he is directed to allow deduction of the said amount of Rs. 47,92,659 under clause (a) of sub-section (1) and rest of the deduction (exceeding Rs. 47,92,659) if any, eligible to the appellant under clause (b) of sub-section (1) rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because learned counsel for the respondent gave out that he does not have any objection. The amended memo of appeal filed by Shri Bindal is taken on record. Shri Rajesh Bindal also produced a fax message dated April 4, 2005, received from the Joint Commissioner of Income-tax, Bhiwani Range, Bhi-wani, in which the officer concerned has stated that his office is not in a position to intimate the fate of the reference application filed in regard to the assessment year 1986-87. Shri P.C. Jain, learned counsel for the respondent, says that his client too does not have any information about the filing of the application by the Revenue under section 256(2) of the Act in relation to the assessment year 1986-87. Shri Jain also gave out that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trative authorities charged with the duty to act judicially cannot decide matters on considerations of policy or expediency. The requirement of recording of reasons by such authorities is an important safeguard to ensure observance of the rule of law. It introduces clarity, checks the introduction of extraneous or irrelevant considerations and minimises arbitrariness in the decision-making process. Another reason which makes it imperative for the quasi-judicial authorities to give reasons is that their orders are not only subject to the right of the aggrieved persons to challenge the same by filing statutory appeal and revision but also by filing a writ petition under article 226 of the Constitution. Such decisions can also be challenged by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 76] 102 ITR 281 (SC) and S.N. Mukherjee v. Union of India, AIR 1990 SC 1984. In Testeels Ltd. v. N.M. Desai, Conciliation Officer, AIR 1970 Guj 1 a Full Bench of the Gujarat High Court referred to American, British and Australian cases on the subject and laid down the following propositions: "The neccessity of giving reasons flows as a necessary corollary from the rule of law which constitutes one of the basic principles of the Indian Constitutional set up. The administrative authorities having a duty to act judicially cannot therefore decide on considerations of policy or expediency. They must decide the matter solely on the facts of the particular case, solely on the material before them and apart from any extraneous considerations by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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