Neena Singh Thakur Vs PCIT & Anr. (Himachal Pradesh High Court)
Himachal Pradesh High Court held that since order passed under section 148A(d) of the Income Tax is bereft of any cogent or plausible reasons the same is liable to be set aside. Accordingly, matter remanded back to AO to decide afresh.
Facts- Vide the present petition, the petitioner has mainly contested issuance of notice under section 148 of the Income Tax Act and subsequent order passed thereon. Petitioner states that the Assessing Officer though passed a detailed order running into almost 10 pages, however, unfortunately no reason whatsoever has been given in support of the conclusion that the escaped income is more than Rs. 50,00,000/-.
Conclusion- Failure to give reasons amounts to denial of justice. Reasons are live links between the minds of the decision-taker to the controversy in question and the decision or conclusion arrived at. Reasons substitute subjectivity by objectivity. The emphasis on recording reasons is that if the decision reveals the “inscrutable face of the sphinx“, it can, by its silence, render it virtually impossible for the Courts to perform the appellate function or exercise the power of judicial review in adjudging the validity of the decision. Right to reason is an indispensable part of a sound judicial system.
