TaxTMI 
TaxTMI 
2019 (6) TMI 405
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....tion Bank, Koramangala-PBB, Bengaluru. 2. The petitioner is an assessee borne on the files of the respondent, has been subjected to tax on income. It is submitted by the petitioner-assessee that he has filed a return of income on 30.03.2018 relating to the assessment year 2016-17, offering to tax the capital gains along with other sources of income. The said return is held to be a defective return. It is submitted that the petitioner filed a revised return on 18.09.2018 declaring the long term capital gains and claiming deduction under Section 48 and exemption under Section 54F of the Act. It is the grievance of the petitioner that the respondent without providing sufficient opportunity of hearing had proceeded to pass the impugned assessm....
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....ot be taken cognizance by the respondent in concluding the assessment under Section 143[3] of the Act. Reliance is placed on the judgment of the Hon'ble Apex Court in the case of Goetze [India] Ltd., V/s. Commissioner of Income Tax LAWS[SC] 2006 3 116, 5. I have carefully considered the rival submissions of the learned counsel appearing for the parties and perused the material on record. 6. The sole question that arises for consideration before this Court is whether the assessment order impugned passed under Section 143[3] of the Act is justifiable or warrants interference by this Court? 7. Ordinarily, this Court would have relegated the petitioner-assessee to avail the statutory remedy of appeal available under the Act provided the prin....
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.... upon the Courts has invited attention of all concerned in the justice administration system. Despite heavy quantum of cases in Courts, in our view, it would neither be permissible nor possible to state as a principle of law, that while exercising power of judicial review on administrative action and more particularly judgment of courts in appeal before the higher Court, providing of reasons can never be dispensed with. The doctrine of audi alteram partem has three basic essentials. Firstly, a person against whom an order is required to be passed or whose rights are likely to be affected adversely must be granted an opportunity of being heard. Secondly, the concerned authority should provide a fair and transparent procedure and lastly, the ....
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.... or rejection of his prayer. Reasons are the soul of orders. Non-recording of reasons could lead to dual infirmities; firstly, it may cause prejudice to the affected party and secondly, more particularly, hamper the proper administration of justice. These principles are not only applicable to administrative or executive actions, but they apply with equal force and, in fact, with a greater degree of precision to judicial pronouncements. A judgment without reasons causes prejudice to the person against whom it is pronounced, as that litigant is unable to know the ground which weighed with the Court in rejecting his claim and also causes impediments in his taking adequate and appropriate grounds before the higher Court in the event of challe....
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....he Courts to ascertain the minds of the authorities while exercising the power of judicial review. 10. It is well settled legal principle that there is no bar to invoke the writ jurisdiction against a palpable illegal order passed by the Assessing Authority in contravention of the principles of audi alteram partem. On this ground alone, the order impugned cannot be approved. There is no cavil with the arguments of the learned counsel for the respondent placing reliance on the judgment of the Hon'ble Apex Court in Goetze [India] Ltd., supra, that no claim for deduction otherwise than, by filing a revised return can be considered but not in the absence of Assessing Officer analyzing, adjudicating and arriving at a decision by recording the r....