HC expresses ‘Shock & Anguish’ at Mal-Administration by Tax Dept.

Much emphasis was laid by the learned counsel for the petitioner that during the course of the assessment proceedings, the proceeding for cancellation of registration under section 12A was also taken out by the Commissioner of Income Tax. The said proceeding have been dropped by the order dated 25.01 .2008. The said order makes an interesting reading. For the sake of convenience, the order is reproduced here in its entirety:-

“Sub: Show cause cancellation of registration u/s 12AA of the I.T. Act 1961- Reg.

Please refer to the subject mentioned above.

The proceedings u/s 12 AA (3) for cancellation of registration are hereby dropped.”

It is shocking to note that the Commissioner of Income Tax, Muzaffarnagar who passed the above order has dropped the proceedings for cancellation of registration without assigning any reason. The order being bereft of any reason cannot be treated an order in the eyes of law. One fails to understand what impelled him to do so. The order being bereft of any reason is no order in the eyes of law and is liable to be ignored being illegal and void. The petitioner’s counsel was put to notice to support the order. The only reply he could give is that in the present petition the order dated 25.1.2008 is not in issue. We are not at all impressed by the said argument. When there as a transaction of Rs.1,57,00,000/- a speaking order even dropping the proceeding at least was required. We, therefore, hold that the petitioner cannot derive any advantage from the aforesaid order.