H One India Pvt Ltd Uttar Pradesh v. Acit Tds Noida

The Income Tax Appellate Tribunal Delhi Bench C New Delhi Before Sh N K Saini Am And Sh K N Chary Jm Ita No 4464 Del 2016 Asstt Year 2012 13 Ita No 4465 Del 2016 Asstt Year 2013 14 H One India Pvt Ltd 12 Udyog Vihar Surajpur Greater Noida U P 201305 Vs Asstt Commissioner Of Income Tax Tds Noida Appellant Respondent Pan No A A A Ch 3032 L Assessee By None Revenue By Sh Arun Kumar Yadav Sr Dr Date Of Hearing 14 12 201 7 Date Of Pronounce Ment 22 12 201 7 Order Per N K Saini Am These Two Appeals By The Assessee Are Directed Against The Common Order Dated 30 06 2016 Of Ld Cit A I Noida For The Assessment Years 2012 13 And 2013 14 2 Since The Issue Involved Is Common In Both These Appeals Which Were Heard Together So These Are Being Disposed Off By This Consolidated Order For The Sake Of Convenience A Nd Brevity Ita No S 4464 4465 De L 2016 H One India Pvt Ltd 2 3 During The Course Of Hearing Nobody Was Present On Behalf Of The Assessee Therefore The Appeals Are Decided Ex Parte After Considering The Submissions Of The Ld Dr 4 The Only Issue Involved In These Appeals Relates To The Sustenance O F The Demand Raised By The Ao U S 201 1 201 1 A Of The Income Tax Act 1961 Hereinafter Referred To As The Act Amounting To Rs 9 80 039 And Rs 7 65 186 For The Assessment Years 2012 13 And 2013 14 Respectively 5 Facts Of The Case In Brief Are Tha T The Ao Raised The Impugned Demands By Observing That The Assessee Had Made Payment To The Transporters But Had Not Deducted Tax U S 194 I Of The Act 6 Being Aggrieved The Assessee Carried The Matter To The Ld Cit A Who Pass Ed The Ex Parte Order And Sustained The Demand Raised By The Ao 7 Now The Assessee Is In Appeal The Ld Dr Supported The Impugned Order Passed By The Ld Cit A 8 We Have Considered The Submissions Of The Ld Dr And Perused The Material Available On The Record In The Presen T Case It Is Noticed That The Ld Cit A Although Mentioned In Ita No S 4464 4465 De L 2016 H One India Pvt Ltd 3 Para 2 Of The Impugned Order That Sh D D Bansal Fca Appeared On Behalf Of The Assessee At The Same Time On The Face Of The Impugned Order In Column Nos 12 13 He Has Mentioned That Nob Ody Was Present On Behalf Of The Assessee Or The Department In The Present Case The Ld Cit A In Para 6 Of The Impugned Order Stated As Under 6 The Appellant Has Also Placed Reliance On The Orders Of My Ld Predecessor For A Ys 2008 09 And 2009 10 W Here My Ld Predecessor Accepted The Contention Of The Appellant And Deleted The Impugned Assessment Orders With Due Respect To My Ld Predecessor I Am In Disagreement With My Ld Predecessor On This Issue 9 From The Above Observations Of The Ld Cit A It Is Crystal Clear That The Issue Was Decided By The Predecessor Of The Ld Cit A For The Assessment Years 2008 09 And 2009 10 In Favour Of The Assessee But The Ld Cit A Did Not Agree With His Predecessor Without Assigning Any Cogent Reason Theref Ore The Impugned Order Is A Non Speaking Order In The Eyes Of Law It Is Well Settled That The Order Judgment Unsupported By Reason Is Not A Judgment In The Eyes Of Law And That The Reasons Are The Links Between The Material On Record And The Conclusion T Hereafter By The Court Appellate Authority In Our Opinion The Ld Cit A Should Have Proper Ly Considered The Arguments Of The Assessee As Well As The Findings Given By The Ao And Thereafter He Should Have Ita No S 4464 4465 De L 2016 H One India Pvt Ltd 4 Given The Reasons As To Why The View Taken By His Predecessor In The Similar Circumstances Was Not Sustainable Or What Were The Reasons For His Disagreement 10 The Honble Punjab Hary Ana High Court In The Case Of Ci T V S Palwal Co Operative Sugar Mills Ltd 2006 284 Itr 153 Has Held As Under Every Judicial Quasi Judicial Body Authority Must Pass A Reasoned Order Which Should Reflect The Application Of Mind Of The Concerned Authority To The Issues Points Raised Before It The Requirement Of Recording Reasons Is An Important Safeguard To Ensure Observance Of The Rule Of Law I T Introduces Clarify Checks The Introduction Of Extraneous Or Irrelevant Considerations And Minimizes Arbitrariness In The Decision Making Process Another Reason Which Makes It Imperative For Quasi Judicial Authorities To Give Reasons Is That Their Orders Are Not Only Subject To The Right Of The Aggrieved Persons To Challenge Them By Filing Statutory Appeal And Revision But A So By Filing Writ Petition Under Article 226 Of The Constitution Such Decisions Can Also Be Chall Enged By Way Of Appeal Under Article 136 Of The Constitution Of India The High C Ourts Have The Power To Issue Writs Of Certiorari To Quash The Orders Passed By Quasi Judicial Authorities Tribunals Likewise In Appeal The Supreme Court Can Nullify Such O Rd Er Decision The Power Of Judicial Review Can Be Effectively Exercised By The Superior Courts Only If The Order Under Challenge Contains Reasons If Such Order Is Cryptic And De Void Of Reasons The Courts Ita No S 4464 4465 De L 2016 H One India Pvt Ltd 5 Can Not Effectively Exercise The Power Of Judici Al Review 11 The Honble Supreme Court In The Case Of Mangalore Ganesh Beedi Works V S Cit And Another 2005 273 Itr 56 Has Held As Under Though In An Order Of Affirmation In An Appeal U S 260 A Of Income Tax Act 1961 Repetition Of The Reasons Elabo Rately May Not Be Necessary The Arguments Advanced Points Urged Have To Be Dealt With Reasons For Affirmation Have To Be Indicated Though In Appropriate Cases They May Be Brief It Has Further Been Held Recording Of Reasons Is A Part Of Fair Pro Cedure Reasons Are The Harbinger Between The Mind Of The Maker Of The Decision In The Controversy And The Decision Or Conclusion Arrived At They Substitut E Subjectivity With Objectivity Failure To Give Reasons Amounts To Denial Of Justice As We Have Already Pointed Out That In The Present Case Ld Cit A Has Not Recorded Any Reason In Support Of His Decision Therefore The Failure To Give Reasons Amounts To Denial Of Justice As Per The Ratio Laid Down By The Honble Supreme Court In The Aforesaid Ca Se And The Present Case Requires Re Adjudication At The Level Of Ld Cit A Ita No S 4464 4465 De L 2016 H One India Pvt Ltd 6 12 The Hon Ble Punjab Haryana High Court In The Case Of Cit V S Vikas Chemi Gum India 2005 276 Itr 32 Has Held As Under The Requirement Of Recording Of Reasons And Communic Ation Thereof Has Been Read As An Integral Part Of The Concept Of Fair Procedure The Necessity Of Giving Reasons Flo Ws From The Concept Of Rule Of L Aw Which Constitutes One Of The Comer Stones Of Our Constitutional Set Up The Administrative Authorities C Hanged With The Duty To Act Judicially Cannot Decide The Matters On Considerations Of Policy Or Expediency The Requirement Of Recording Of Reasons By Such Authorities Is An Important Safeguard To Ensure Observance Of The Rule Of Law It Introduces Clarity Checks The Introduction Of Extraneous Or Irrelevant Considerations And Minimizes Arbitrariness In The Decision Making Process Another Reason Which Makes It Imperative For The Quasi Judicial Authorities To Give Reasons Is That Their Orders Are Not Only S Ubject To The Right Of The Aggrieved Persons To Challenge The Same By Filing Statutory Appeal And Revision But Also By Filing Writ Petition Under Articles 226 Of The Constitution Such Decisions Can Also Be Challenged By Way Of Appeal Under Ar Ticle 136 Of The Constitution Of India The High Courts Have The Power To Issue Writ Of Certiorari To Quash The Orders Passed By A Quasi Judicial Authority Tribunal Likewise In Appeal The Supreme Court Can Nullify Such Order Decision These Powers Can Be Effectivel Y Exercised By The Superior Courts Only If The Order Un Der Challenge Contains Reasons Ita No S 4464 4465 De L 2016 H One India Pvt Ltd 7 As P Ointe D Out Earlier That The Imp Ugned Order Passed By The Ld Cit A Is With Out Any Proper Reas Oning Therefore In View Of The Ratio Laid Down In The Afo Resaid Referred To Judicial Pronouncement It Deserves To Be Remanded Back For Fresh Adjudication At The Level Of L D Cit A 13 In The Present Case As We Have Already Noted The Order Pa Ssed By The Ld Cit A Is A Non Speaking Order And Devoid Of Reas Ons So It Is A Cryptic Order In The Eyes Of Law And Not Sustainable Therefore We Se T Aside The Impugned Order Of Ld Cit A And Remand The Issue Back To His File For Fresh Adjudication In Accordance With Law After Providing Due And Reasonable Opportunit Y Of Being Heard To Both The Parties 14 In The Result The Appeal S Of The Assessee Are Allowed For Statistical Purposes Order Pron Ounced In The Court On 22 12 2017 Sd Sd K N Chary N K Saini Judicial Member Accountant Member Dated 22 12 2017 Subodh Copy Forwarded To 1 Appellant 2 Respondent 3 Cit 4 Cit Appeals 5 Dr Itat Assistant Registrar