TaxTMI 
TaxTMI 
1978 (3) TMI 94
X X X X Extracts X X X X
X X X X Extracts X X X X
....ommissioner of Income-tax on August 17, 1972. After examination of the case, he directed the income-tax Officer to reopen the assessment for the year 1971-72 under section 143(2)(b) of the Income-tax Act and to ask the petitioner to submit the net wealth statement. Pursuant to the aforesaid order, the Income-tax Officer on September 12, 1972, called upon the petitioner to file the list of debtors, creditors along with the personal net wealth statement. The petitioner was also required to give basis of sales and purchases made by him. Thereafter, on October 20, 1972, a notice under section 143(2) of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), was issued to the petitioner. After seeking some adjournments, the petitioner....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... rejected by the Commissioner of Income-tax on 18th May, 1977. The order rejecting the application reads as under : " This order covers application made by the assessee under section 273A of the I. T. Act, 1961, for a. ys. 1966-67 to 1972-73. After considering the circumstances of the case, I am satisfied that the application made by the assessee is not covered by the provision of section 273A of the I. T. Act. I hereby reject the petition under section 273A of the I. T. Act, 1961, for a. ys. 1966-67 to 1972-73. Sd. A. R. Natarajan, Commissioner of Income-tax, Agra. Dated : 18-5-1977." Upon the rejection of the said application the petitioner filed the present writ in this court challenging the order of the Income-tax Commiss....
X X X X Extracts X X X X
X X X X Extracts X X X X
....poses upon parties obligations affecting their civil rights ; (3) the investigation is subject to certain procedural attributes contemplating an opportunity of presenting its case (to a party). In the instant case, it would be seen that under section 273A of the Act the Commissioner of Income-tax is required to decide an application filed under that provision objectively by taking into account the factors mentioned therein. He has to consider it on merits and if the conditions for the exercise of the power conferred by this section are made out, he is obliged to exercise the discretion in favour of an assessee making an application under this provision. Though the word used in section 273A of the Act is " discretion " it is obvious th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... India, AIR 1966 SC 671, that " a speaking order will at its best be a reasonable and at its worst at least a plausible one ". The insistance for giving reasons in an order introduces clarity and prohibits an authority from taking into consideration irrelevant and illegal matters while deciding a case before it. It further creates confidence in the public mind. Another ground which is often advanced in taking the view for giving reasons is based on the power of judicial review conferred by the Constitution on the High Court under article 226 of the Constitution and the Supreme Court under article 32. Dealing with this aspect, the Supreme Court observed in Travancore Rayons Ltd. v. Union of India, AIR 1971 SC 862 at page 866 thus : " T....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d been rejected. It does not give any reason for its rejection. The learned counsel for revenue, however, produced the entire file relating to the case of the petitioner before us in his attempt to justify that the reasons had been recorded by the Commissioner in it. The learned counsel desired us to read the order of the Commissioner which is to the following effect : " I agree. The requisite conditions for waiver/reduction are not satisfied," along with the notings made by the officer on the file of the petitioner. We have seen the notings and are unable to find anything therein which could show any ground or motive for the order. In fact, out of the two notings made in the file, one of them recommends that, since the requirements of s....