TMI Blog2023 (12) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... ich ought to set forth reasons and the decision thereof, so that the factum of due application of mind by the authority, becomes evident. In the instant case, the orders of the authorities below, are conspicuous by absence of any reason for the decision thereof, and therefore, the same are grossly unsustainable. Thus, considering the entirety of circumstances, we set aside the orders of the lower authorities and remit the matter back to the file of the Assessing Officer for consideration afresh. AO shall consider the calculation of interest u/s. 234B and 234C as canvassed by the assessee in his application dated 16.11.2017 and thereafter pass a speaking order, in accordance with law - Hon ble Justice C.V. Bhadang, President And S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not found tenable. iv) That NFAC, Delhi has erred in confirming the interest charged u/s. 234B and 234C as correct without going into the details of calculation of interest submitted by the appellant. 2. Although the assessee has raised multiple Grounds of Appeal, but essentially the grievance arises from the action of the income tax authorities in non-appropriate disposal of the Application of the Assessee seeking rectification of mistake in calculation of interest chargeable under sections 234B and 234C of the Act while finalizing the assessment under section 143(3) of the Act dated 20.10.2017. 3. Briefly put, the relevant facts are that the assessee is an individual who filed his return of income on 31.07.2015 declaring an in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the income tax computation sheet annexed to the assessment order dated 20.10.2017, the total tax and interest payable is computed at Rs. 5,61,080/- inter alia, including interest charged under sections 234B and 234C of the Act of Rs. 3,32,081/- and Rs. 6,32,640/- respectively. The assessee filed an application under section 154 of the Act dated 16.11.2017 alongwitha calculation sheet wherein interest under sections 234B and 234C of the Act was computed at Rs. 2,12,878/- and Rs. 1,96,906/- respectively, which differs from the amounts charged by the Assessing Officer. We find that such application did not find favour with the Assessing Officer and the only reason advanced in the order dated 31.07.2019 (supra) is that the plea of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts to perform their appellate function or exercise the power of judicial review in adjudging the validity of the decision. Right to reason is an indispensable 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 natural justice is spelling out reasons for the order made, in other words, a speaking out. The inscrutable face of a sphinx is ordinarily incongruous with a judicial or quasi-judicial performance. 8. In our considered opinion, in the instant case, the orders of the authorities below, are conspicuous by absence of any reason for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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