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TMI Blog2025 (5) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... to interfere with the notice of the instant kind, however, the peculiar facts and circumstances of this case warrants interference given the fact that the petitioner was served with the notice under Section 148A(d), the relevant portion whereof reads as under:- "To Neena Singh Thakur C/O Naveen Tanwar, Advocate Gompa road Manali, Model Town, Manali, Kullu-175131 India PAN ACAPT9245J A.Y. 2017-18 Dated: 15/01/2024 DIN & Notice No. ITBA/AST/F/ 148A(SCN)/2023 Notice under Clause (b) of Section 148A of the Income Tax, Act, 1961 Sir, Madam/M/s Whereas I have information which suggests that income chargeable to tax for the Assessment Year 2017-18 has escaped assessment within the meaning of Section 147 of the Income tax Act, 1961. the details of the information/enquiry conducted on which reliance is being placed, alongwith the supporting documents, are enclosed with this notice. 2. You are required to show cause as to why, in view of the details contained in enclosures mentioned in point number 1 above, a notice under Section 148 of the Income Tax Act, 1961 should not be issued. 3. You may submit your reply to this notice alongwith supporting do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish the complete details alongwith supporting documents consisting of nature/type of property purchased, location of properties, total area involved, year and date of purchase/acquisition as well as mode and cost of acquisition/purchase, complete name and address of persons/parties from whom properties in question purchased etc. iv) Please also provide your e-mail ID and contact number for record purchase and for future correspondence. Further to communicate with the department in an electronic manner, please firstly register yourself through e-filing portal (i.e. if not registered) 3. You are, therefore, requested to please furnish the requisite information along with supporting documents (ie. complete in all respects) on or before 25.01.2024 to this office either through your e-filing portal or through e-mail at kullu.ito@incometax. Gov. In or through speed post so that same may reach this office by the given time." 3. The petitioner has not only replied to the show cause notice but submitted all the necessary documents in support of its case and further pointed out that the immovable property purchased by her is not of the value of Rs. 1,21,00,000/- but of Rs. 1,31,63,93 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w was summarized as under:- (a) In India the judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. (b) A quasi-judicial authority must record reasons in support of its conclusions. (c) Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well. (d) Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. (e) Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. (f) Reasons have virtually become as indispensable a component of a decision making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. (g) Reasons facilitate the process of judicial review by superior Courts. (h) The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the life ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shrilekha Vidyarthi Vs. U.P. (1991) 1 SCC 212 this Court has observed as under: (SCC p. 243. para 36). "36......Every State action may be informed by reason and it follows that an act uninformed by reason, is arbitrary. The rule of law contemplates governance by laws and not by humour, whims or caprices of the men to whom the governance is entrusted for the time being. It is the trite law that 'be you ever so high, the laws are above you'. This is what men in power must remember, always." 40. In LIC Vs. Consumer Education and Research Centre (1995) 5 SCC 482 this Court observed that the State or its instrumentality must not take any irrelevant or irrational factor into consideration or appear arbitrary in its decision. "Duty to act fairly is part of fair procedure erwisaged under Articles 14 and 21. Every activity of the public authority or those under public duty must be received and guided by the public interest. A similar view has been reiterated by this Court in Union of India Vs. Mohan Lal Capoor (1973) 2 SCC 836 and Mahesh Chandra Vs. U.P. Financial Corpn. (1993) 2 SCC 279. 41. In State of W.B. Vs. Atul Krishna Shaw 1991 Supp (1) SCC 414, this Court observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as an essential requisite of the principles of natural justice. 3....The giving of reasons for a decision is an essential attribute of judicial and judicious disposal of a matter before courts, and which is the only indication to know about the manner and quality of exercise undertaken, as also the fact that the court concerned had really applied its mind'. The reason is the heartbeat of every conclusion. It introduces clarity in an order and without the same, the order becomes lifeless. Reasons substitute subjectivity with objectivity. The absence of reasons renders an order indefensible/ unsustainable particularly when the order is subject to further challenge before the higher forum. Recording of reasons is the principle of natural justice and every judicial order must be supported by reasons recorded in writing. It ensures transparency and fairness in decision making. The person who is adversely affected must know why his application has been rejected." 45. In Institute of Chartered Accountants of India Vs. L.K. Ratna (1986) 4 SCC 537, this Court held that on charge of misconduct the authority holding the inquiry must record reasons for reaching its conclusion and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st judicial functions must record the reasons for its decision is that such a decision is subject to the appellate jurisdiction of this 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. 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 at 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 standpoint of policy and expediency. Reasons, when recorded by an administrative authority in an order passed by it while exercising q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or otherwise" and that "where further proceedings are open to a disappointed party, it is contrary to natural justice that the silence of the Minister or the Ministerial Tribunal should deprive them of the opportunity." (P 80) Prof. H.W.R. Wade has also expressed the view that "natural justice may provide the best rubric for it, since the giving of reasons is required by the ordinary man's sense of justice." (See Wade, Administrative Law. 6th Edn. P. 548)." 12. In Pankaj Garg vs. Meenu Garg & Anr. (2013) 3 Supreme Court Cases 246, the Hon'ble Supreme Court reiterated the settled position of law holding that an order, which does not contained any reason, is no order in the eyes of law. 13. Since the order passed by the Assessing Officer is bereft of any cogent or plausible reasons, the same is set aside. The matter is remanded back to the Assessing Officer to decide the same afresh in accordance with law. If the Assessing Officer still comes to the conclusion that notice under Section 148 is necessary, then he shall record detailed reasons for arriving at such conclusion. The Assessing Officer is directed to decide the case as expeditiously as possible and in no event later ..... X X X X Extracts X X X X X X X X Extracts X X X X
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