1978 (3) TMI 65 - HC - Income Tax

Summary

Issues Involved:
1. Opportunity of Oral Hearing
2. Requirement of a Speaking Order
3. Voluntariness of Filing Returns
4. Consideration under Sub-section (4) of Section 273A

Summary:

1. Opportunity of Oral Hearing:
The petitioner contended that the Commissioner of Income-tax did not provide an opportunity for an oral hearing before rejecting the application u/s 273A, rendering the order invalid. The court noted that there is no provision in section 273A of the Act mandating an oral hearing. The principles of natural justice do not necessarily require a personal hearing; a written representation suffices. The court concluded that the petitioner had full opportunity to make a representation, thus rejecting this submission.

2. Requirement of a Speaking Order:
The petitioner argued that the order was not a speaking order, lacking reasons for the decision. The court emphasized that quasi-judicial orders must be supported by reasons to ensure transparency and fairness. The court found that the reasons provided by the Commissioner were sufficient and aligned with the statutory requirements, thus dismissing this submission.

3. Voluntariness of Filing Returns:
The petitioner claimed that the returns were filed voluntarily and in good faith. The court observed that the returns were filed only after the Income-tax Officer initiated a detailed inquiry, indicating that the filing was not voluntary. The court referred to the definition of "detection" and concluded that the returns were filed after the concealment was detected by the department. Therefore, the Commissioner was correct in holding that the returns were not filed voluntarily.

4. Consideration under Sub-section (4) of Section 273A:
The petitioner asserted that the application also sought relief under sub-section (4) of section 273A, which the Commissioner did not address. The court reviewed the application and found no indication that it was filed under sub-section (4). Consequently, the order could not be invalidated on this ground.

Conclusion:
The writ petition was dismissed with costs, as the court found no merit in the submissions made by the petitioner.