Speaking order requirement in revision proceedings led to setting aside an unreasoned order and remand for fresh consideration.

A revisional order must be a speaking order supported by reasons and logical justification; where the authority restores an assessment without disclosing the basis for its conclusion, the order cannot be sustained. The High Court declined to decide the merits itself and held that the proper course was to set aside the defective revisional order and remit the matter for fresh consideration after notice and hearing, in favour of the assessee.

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Issues: Whether the revisional order was liable to be set aside for want of reasons and whether the matter required remand for fresh decision.

Analysis: The revisional authority had restored the original assessment without indicating any grounds or reasoning in support of its conclusions. An order passed in exercise of revisional powers must be a speaking order supported by logical reasoning and justification. Where the order discloses no basis for the conclusion reached, it cannot be sustained. The High Court also declined to undertake a merits examination in place of the revisional authority and held that the proper course was to set aside the defective order and remit the matter for fresh consideration after notice and hearing.

Conclusion: The revisional order was set aside and the matter was remanded to the revisional authority for fresh decision according to law, in favour of the assessee.

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