Reasoned statutory orders under the Kar Vivad Samadhan Scheme are mandatory; a non-speaking rejection was set aside for fresh hearing.
An order rejecting an assessee's objection under the Kar Vivad Samadhan Scheme was unsustainable because it gave no reasons and did not deal with the objection on merits. A statutory decision must disclose application of mind and support its conclusion with reasons; a bare statement that the Form 2A intimation was correct was insufficient. The HC set aside the rejection and remitted the matter for fresh consideration after affording the assessee a hearing, with directions to record reasons if the objection is again rejected.
Issues: Whether the order rejecting the objection under the Kar Vivad Samadhan Scheme was sustainable when it contained no reasons and did not deal with the objection, and whether the matter had to be decided afresh after hearing the assessee.
Analysis: The objection raised by the assessee was not considered on merits and the impugned communication merely stated that the Form 2A intimation was correct. An order that rejects a statutory objection without disclosing reasons does not show application of mind and fails the requirement that conclusions must be supported by reasons. In such a situation, the correctness of the tax determination was not examined on merits, and the proper course was to set aside the order and require a fresh decision after affording a hearing.
Conclusion: The rejection order was unsustainable and was set aside. The authority was directed to decide the objection afresh after giving the assessee an opportunity of hearing and, if the objection was rejected, to record reasons.
Final Conclusion: The assessee succeeded in obtaining setting aside of the impugned rejection and a remand for fresh consideration in accordance with law.
Ratio Decidendi: A statutory order rejecting an objection must be a reasoned order showing application of mind and, where reasons are absent, the order is liable to be set aside and the matter remitted for fresh decision after hearing the affected party.
TaxTMI 
AI Drafter ✕
TaxTMI 
