2005 (2) TMI 56

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....w in confirming the order of the learned Commissioner of Income-tax (Appeals), who deleted the addition of Rs. 1,38,860 made on account of value of "bardana" used for storing "churi" and "korma"? (ii) Whether, on the facts and in the circumstances of the case, the honourable Tribunal was right in law in confirming the order of the Commissioner of Income-tax (Appeals), who directed the Assessing Officer to exclude the sale of "churi korma" out of total turnover while working out the deduction under section 80HHC?" For the assessment year 1988-89, the respondent filed a return on July 29, 1988, declaring a total income of Rs. 2,20,900. The Assessing Officer finalised the assessment under section 143(3) read with section 184(7) of the Ac....

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....to allow deduction of the said amount of Rs. 47,92,659 under clause (a) of sub-section (1) and rest of the deduction (exceeding Rs. 47,92,659) if any, eligible to the appellant under clause (b) of sub-section (1) read with sub-section (3)(b) of section 80HHC, subject to the creation of necessary reserve and ensuring that the overall deduction does not exceed the profit derived by the appellant from export. These directions are given with the finding that the total turnover of the appellant will also include the amount realised on sale of by-product(s), i.e., churi korma, for the purpose of sub-section (3)(b) of section 80HHC as these do represent the sale proceeds of the appellant." The appeal filed by the Revenue against the order of th....

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....dent, says that his client too does not have any information about the filing of the application by the Revenue under section 256(2) of the Act in relation to the assessment year 1986-87. Shri Jain also gave out that the Revenue did not challenge the order passed by the Tribunal in relation to the assessment year 1987-88 vide which both the questions, of which determination has been sought in this appeal, were decided in favour of the respondent. We have heard learned counsel for the parties and perused the record. Since the appellant did not challenge the order passed by the Tribunal in relation to the assessment year 1986-87 vide which it confirmed the order of the Commissioner of Income-tax (Appeals) deleting the addition made by t....

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....ly subject to the right of the aggrieved persons to challenge the same by filing statutory appeal and revision but also by filing a writ petition under article 226 of the Constitution. Such decisions can also be challenged by way of appeal under article 136 of the Constitution of India. The High Courts have the power to issue a writ of certiorari to quash the orders passed by a quasi-judicial authority/Tribunal. Likewise, in appeal the apex court can nullify such order/decision. These powers can be effectively exercised by the superior courts only if the order under challenge contains reasons. If such order is cryptic and devoid of reasons, the courts cannot effectively exercise the power of judicial review and we cannot countenance a situa....

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....ially cannot therefore decide on considerations of policy or expediency. They must decide the matter solely on the facts of the particular case, solely on the material before them and apart from any extraneous considerations by applying pre-existing 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, minimises 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 u....