1992 (12) TMI 87

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....IT had not considered the application of the assessee for stay properly as it was rejected without giving any reason. Therefore, by order dt. 20th Nov., 1992 the Tribunal came to the conclusion that such a rejection was untenable and until the application was properly considered by the CIT, the application before the Tribunal was premature. The Tribunal pointed out that the AO and the TRO had powers to grant stay under ss. 220 and 225 respectively, that they function as subordinates of the CIT as notified under s. 118, that the suo motu powers of superintendence of CIT can be invoked by the assessee, that the exercise of such powers is coupled with the duty to be fair and he is, therefore, required to pass a speaking order after giving an o....

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....n to be treated fairly in his interaction with the state and its instrumentalities, with this element forming a necessary component of the decision making process in all State actions. To satisfy this requirement of non-arbitrariness in a State action, it is, therefore, necessary to consider and give due weight to the reasonable or legitimate expectations of the persons likely to be affected by the decision or else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona fide of the decision in a given case. The decision so made would be exposed to challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrea....