Speaking orders u/s 271(4A)/273A of Income Tax Act and 18(2A)/18(B) of Wealth Tax Act . - Income Tax - 1377/CBDT

INSTRUCTION NO. 1377/CBDT Dated: January 27, 1981 Reference is invited to Instruction No.763 dated the 23rd September 1974 in Boards F.No.320/48/73-WT in which the Board had advised the Commissioners that while passing orders u/s.18(2)A of the W.T.Act the observations of the Karnataka High court in the case of Smt.Vidya Bai Vs. CWT and and S.Sannaiah Vs. CIT should be followed regarding the necessity to pass a speaking order. From some of the orders passed by the Commissioners u/s.271(4A)/273A of the I.T.Act and 18(2A)/18(B) of the W.T.Act which came up before the board it is seen that these instructions are not followed by some of the commissioners as the orders were not found to be speaking orders. The orders u/s.271(4A)/273(A) of the I.T.Act and 18(2A)/18(B) of the Wealth-tax Act are quasi-judicial orders and should be supported by reasons with reference to the facts of the case. The position has recently been reiterated by the Gujarat High Court in Smt.Shanataben Ranachhodbhai Patel vs. CWT and by the Rajasthan High Court in Shiv Narain Dhabhai vs. CWT(121 ITR 224) 2. The Commissioners are once again advised that orders u/s.271(4A)/273 A of the I.T.Act and 18(2A)/18(B) of the W.T.Act should be speaking orders as held by various courts.