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TMI Blog2018 (11) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... f the principles of natural justice as per law laid down by the Supreme Court in V.K. Awasthy's case (2005 (3) TMI 476 - SUPREME COURT OF INDIA) as noticed hereinabove. Accordingly, the appeal is allowed - ITA-196-2016 - - - Dated:- 22-10-2018 - MR AJAY KUMAR MITTAL AND MR AVNEESH JHINGAN, JJ. For The Respondent : Mr. Denesh Goyal, Sr. Standing Counsel ORDER AJAY KUMAR MITTAL, J. 1. This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the order dated 7.1.2016 (Annexure A-2) passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as the Tribunal ) in ITA No. 309/Chd/2015, claiming the following substantial questions of law:- ( i) Whether on facts and circumstances of the case and in law the ITAT had erred by failing to consider the findings of the Commissioner of Income Tax who concluded that the expenses incurred by the trust are not in consonance with the objects of the trust and without any essence of rendering services, for which it was formed? ( ii) Whether on facts and circumstances of the case and in law the ITAT has erred b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are ₹ 97,508/- out of which ₹ 2582/- had been incurred towards office expenses and other expenses. Feeling aggrieved by the order, Annexure A-1, the assessee filed an appeal before the Tribunal who vide order dated 7.1.2016 (Annexure A- 2) allowed the appeal holding that the CIT(E) had refused to grant registration without disclosing the complete contents of the report and without confronting the same to the assessee. The Tribunal had directed the CIT(E) to grant registration to the assessee under Section 12AA of the Act. Hence, the present appeal by the revenue. 3. Learned counsel for the appellant submitted that the impugned order dated 7.1.2016 (Annexure A-2) does not satisfy the test of being a reasoned and speaking order and is, thus, liable to be quashed. It has further been urged that the impugned order has been passed in violation of the principles of natural justice. 4. After hearing learned counsel for the appellant, we find merit in the submission of learned counsel for the revenue. 5. A perusal of the order, Annexure A-2 shows that it is neither speaking nor gives any cogent reasons for granting registration to the appellant under Section 12AA of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the life blood of judicial decision making justifying the principle that reason is the soul of justice. i. Judicial or even quasi-judicial opinions these days can be as different as the judges and authorities who deliver them. All these decisions serve one common purpose which is to demonstrate by reason that the relevant factors have been objectively considered. This is important for sustaining the litigants' faith in the justice delivery system. j. Insistence on reason is a requirement for both judicial accountability and transparency. k. If a Judge or a quasi-judicial authority is not candid enough about his/her decision making process then it is impossible to know whether the person deciding is faithful to the doctrine of precedent or to principles of incrementalism. l. Reasons in support of decisions must be cogent, clear and succinct. A pretence of reasons or 'rubberstamp reasons' is not to be equated with a valid decision making process. m. It cannot be doubted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igants' defence. 10. The adherence to principles of natural justice as recognized by all civilized States is of supreme importance when a quasi-judicial body embarks on determining disputes between the parties, or any administrative action involving civil consequences is in issue. These principles are well settled. The first and foremost principle is what is commonly known as audi alteram partem rule. It says that no one should be condemned unheard. Notice is the first limb of this principle. It must be precise and unambiguous. It should appraise the party determinatively the case he has to meet. Time given for the purpose should be adequate so as to enable him to make his representation. In the absence of a notice of the kind and such reasonable opportunity, the order passed becomes wholly vitiated. Thus, it is but essential that a party should be put on notice of the case before any adverse order is passed against him. This is one of the most important principles of natural justice. It is after all an approved rule of fair play. The concept has gained significance and shades with time. When the historic document was made at Runnymede in 1215, the first statutory recogni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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