TaxTMI 
TaxTMI 
2013 (10) TMI 1401
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....5,51,400 was added in the hands of another person, Shri Abdul Rasheed. However, on appeal by Shri Abdul Rasheed, the addition made by the assessing officer was deleted. Therefore, it is not correct to say that the assessing officer has not conducted any property enquiry. Referring to the order of the Administrative Commissioner, the ld.senior counsel for the assessee submitted that it was explained before the assessing officer that the source for the amount was reflected in the books of account and the return of income was also filed by the assessee. Therefore, there is no need for any separate addition. 3. We heard, Shri K.K., John, the ld.DR also. 4. Admittedly, an amount of Rs. 15,51,400 was recovered by Mahe police. In the present assessee's case, even though the assessee claims that the money belonged to him and it was reflected in the books of account, the assessment order does not reflect the application of mind. There is no reasoning appended in the assessment order. In fact, there is not even any discussion in the assessment order. This Tribunal is of the considered opinion that the assessment order being a quasi judicial order, the assessing officer shall discuss....
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....s 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 doubt facilitate the exercise of its jurisdiction by the appellate or supervisory authority. But the other considerations, referred to above, which have also weighed with this court in holding that an administrative authority must record reasons for its decision, are of no less significance. These considerations show that the recorded of reasons by an administrative authority services a salutary purpose, namely, it excludes chances of arbitrariness and ensures a degree of fairness in the process of decision making. The said purpose would apply equally to all decisions and its application cannot be confined to decisions which are subject to appeal, revision or judicial review. In our opinion, therefore, the requirement that reasons be recorded should govern the decisions of an administrative authority exercising quasi-judicial functions irrespective of the fact whether the decision is subject to appeal, revision or judicial review. It may, however, be ad....
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....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 arbitrariness and caprice. If this requirement is insisted upon, then, they will be subject to judicial scrutiny and correction." If the order passed by the Tribunal is scrutinized in the light of the aforementioned proposition of law, we do not find any difficulty in setting aside the same on the ground of violation of the rules of natural justice. The flowery language used by the Tribunal to justify its acceptance of the respondent's plea that he did not know the law does not warrant our affirmation. In our opinion, the Tribunal was duty bound to record tangible and cogent reasons for upsetting well reasoned orders passed by the Assessing Officer and the Commissioner of Income-tax (Appeals). It should have directed its attention to the language of section 271D and 271E of the Act in conjunction with other provisions of the same family and then decided by a reasoned order whether the respondent had been able to make out a case for deleting the pena....
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....otice 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 orders are being passed by the income-tax authorities. In fact, the Allahabad High Court has observed as follows: " The income tax authorities are required to administer the Act. The right to administer, cannot obviously include the right to mal-administer. Thus, we find no words to express anguish as what kind of governance it had been. There is another reason for ignoring the aforesaid order, dropping the cancellation proceeding of registration. The said order does not contain any reason. Reasons introduce clarity in an order. Reason is the heart beat of every conclusion and without the same it becomes lifeless. (See Raj Kishore Jha Versus State of Bihar and others, AIR 2003 SC 4664). Even in respect of administrative orders Lord Denning M.R. in Breen Vs. Amalgamated Engineering Union, (1971) All. E.R. 1148) observed: "The giving of reasons is one of the fundamentals of good administration." Failure to give reasons amounts....