TaxTMI 
TaxTMI 
TaxTMI 
2012 (4) TMI 212
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.... in the manufacture of electrical items. The relevant assessment year is 1987-88 and the corresponding accounting year ended on 31.03.1987. The original assessment was filed by the assessee declaring income of Rs.65,55,668/- on 27.08.1987. Later revised return was also filed on 08.12.1989 disclosing total income of Rs.1,11,78,051/-. The assessment was completed on the total income of Rs.2,60,25,256/- under Section 143(3) of the Act. In both the original as well as the revised returns, the assessee disclosed the claim made for excise duty refund amounting to Rs.1,51,00,000/- and the said amount was credited to the profit and loss account as miscellaneous receipts as per the requirement of the Companies Act. However, the assessee claimed before the assessing officer that the amount was neither received nor accrued to the appellant company in the relevant accounting year and therefore, the same cannot be included in the total income for the assessment year 1987-88. As the said refund of excise duty was not included in the total income for the assessment year 1987-88, the assessing officer rectified the order dated 20.10.1992 and reduced the claim under Section 32AB of the Act to Rs.99....
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....Court reported in (2009) 317 ITR 433 (SHIVSAGAR VEG. RESTAURANT V. ASSISTANT COMMISSIONER OF INCOME TAX AND ANOTHER). As against the order of the Commissioner of Income-tax (Appeals), the assessee or the Revenue as the case may be preferred a further appeal to the Income Tax Appellate Tribunal under Section 253 of the Income Tax Act. The Income Tax Appellate Tribunal is constituted under the provisions of Section 252 of the Act and the Tribunal shall consist of as many judicial and accountant members. Sub Section (6) of Section 255 reads as under : 255(6) The Appellate Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the income-tax authorities referred to in Section 131, and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 and for the purpose of Section 196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of Section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898. For the purpose of exercise of power, the Appellate Tribunal shall be deemed to be a Civil court f....
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....ct, Rules 29, 30 and 31 of the Income Tax Rules empower the Tribunal to record additional evidence. These are all certain provisions which are referred only to show that an appeal cannot be disposed of without application of mind to the various materials which are placed before the Tribunal. In these circumstances, the law requires the Tribunal to record the findings supported by reasons to sustain the order. 6. In the judgment reported in (1987) 2 SCC 222 (JAWAHAR LAL SINGH V. NARESH SINGH), the Apex Court referred to the judgment of Lord Denning M.R. in BREEN V. AMALGAMATED ENGINEERING UNION ((1971) 1 ALL ER 1148) (CA) wherein the Court observed "The giving of reasons is one of the fundamentals of good administration". In SHRI SWAMIJI OF SHRI ADMAR MUTT V. COMMISSIONER, HINDU RELIGIOUS AND CHARITABLE ENDOWMENTS DEPARTMENT (AIR 1980 SC 1), the Apex Court also quoted with approval the legal maxim cessante ratione legis cessat ipsa lex, which means reason is the soul of law and when reason of any particular law ceases, so does the law. In STATE OF WEST BENGAL V. ATUL KRISHNA SHAW, AIR 1990 SC 2205, the Apex Court reiterated that giving of reasons is an essential element of administ....
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....son is applicable with greater rigor to the judicial proceedings as the orders of the Court also must reflect what weighed with the Court in declining the relief. In the book of H.W.R. Wade's "Administrative Law, 7th Edition, it was stated as follows: ..A right to reasons is, therefore, an indispensable part of a sound system of judicial review. Natural justice may provide the best rubric for it, since the giving of reasons is required by the ordinary man s sense of justice ..Reasoned decisions are not only vital for the purposes of showing the citizen that he is receiving justice: they are also a valuable discipline for the tribunal itself .. 8. Recently, the Apex Court in the judgment reported in 2010(9) Scale 199 (M/S KRANTI ASSOCIATES PVT. LTD., & ANOTHER V. SH. MASOOD AHMED KHAN & OTHERS), reiterated the same law and in paragraph 51 it was held as follows: 51. Summarising the above discussion, this Court holds: (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....