TaxTMI 
TaxTMI 
2013 (9) TMI 340
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....e in wealth for assessment year 2007-08 whereas for the assessment year 2009-10 the same was not assessed. Referring to the assessment orders the ld.representative submitted that the assessing officer specifically called for all the details with regard to housing loan repayment and LIC premium payment as also the increase in wealth. The assessee filed all the materials including the cash flow statement. The assessing officer, after satisfying himself about the cash flow statement filed by the assessee allowed the claim of the assessee. However, he has not discussed anything in the assessment orders. According to the ld.representative, when the assessing officer called for all the details and satisfied himself about the expenditure incurred by the assessee, there is no need for further discussion in the assessment orders. Therefore, according to the ld.representative, the Administrative Commissioner had no justification in exercising his jurisdiction u/s 263 of the Act. We heard Smt. S Vijayaprabha, the ld.DR also. 3. The main contention of the ld.representative for the assessee is that the assessing officer had called for details with regard to LIC premium and housing loan repayme....
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....he 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 in 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 stand point of policy and expediency. Reasons, when recorded by an administrative authority in an order passed by it while exercising quasi- judicial functions, would no....
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....legal norms to factual situations. Now the necessity of giving reasons is an important safeguard to ensure observance of the duty to act judicially. It introduces clarity, checks the introduction of extraneous or irrelevant considerations and excludes or, at any rate, minimizes arbitrariness in the decision-making process. Another reason which compels making of such an order is based on the power of judicial review which is possessed by the High Court under article 226 and the Supreme court under article 32 of the Constitution. These courts have the power under the said provisions to quash by certiorari a quasi-judicial order made by an administrative officer and this power of review can be effectively exercised only if the order is a speaking order. In the absence of any reasons in support of the order, the said courts cannot examine the correctness of the order under review. The High Court and the Supreme Court would be powerless to interfere so as to keep the administrative officer within the limits of the law. The result would be that the power of judicial review would be stultified and no redress being available to the citizen, there would be insidious encouragement to arbitr....
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....to interfere at this stage. It goes without saying that when the matter be taken up by the Assessing Officer on remand, it shall be his duty to take into account all the relevant aspects including the materials, if any, already placed by the assessee, and pass a reasoned order." 6. We also find that the Allahabad High Court in a recent unreported judgment expressed its shock and anguish the way in which the assessment orders and the revisional orders are being passed. In fact, the assessee, M/s Fateh Chand Charitable Trust in Writ Tax No.1629 of 2010 (judgment dated 27-05-2013) before the Allahabad High Court received donation of Rs.5.23 crores. The assessing officer accepted the same without any enquiry and reasoning in the assessment order. The Commissioner of Income- tax initiated proceedings to cancel the registration u/s 12A of the Act. However, it was dropped without recording any reason. Subsequently, the case was reopened and notice was issued u/s 147 of the Act. The assessee challenged the notice issued for reopening the assessment by way of writ petition. While considering the wit petition, the Allahabad High Court expressed its shock and anguish on the way in which the ....