SUPREME COURT OF INDIA
M/s. Mangalore Ganesh Beedi Works
Vs.
Commissioner of Income Tax, Mysore
C.A.Nos.767-768 of 2005
((Mrs.) Ruma Pal and Arijit Pasayat JJ.)
28.01.2005
Arijit Pasayat, J.
1. Leave granted.
2. These appeals by the assessee are directed against the judgment rendered by
a Division Bench of the Karnataka High Court in appeals purported to be under
Section 260A of the Income Tax Act, 1961 (in short the 'Act'). The
appeals were filed by the revenue questioning correctness of certain
conclusions arrived at by the Income-Tax Appellate Tribunal, Bangalore Bench
(in short the 'Tribunal') in appeals filed by the assessee as well as the
revenue.
3. The dispute relates to the assessment year 1995-96. The relevant factual
details have been noted in Civil Appeal No.4232 of 2003 and other cases (M.
Janardhan Rao vs. Joint Commissioner of Income Tax etc. etc.) disposed of
today, and are not repeated here. The assessee was described as A.O.P. - 3 by
the revenue authorities in the concerned assessment proceedings.
4. Questioning correctness of certain conclusions by the Tribunal, revenue had
preferred appeals before the High Court. The High Court has held that the
Tribunal's views in respect of Question Nos. (iii), (v) and (vii) as formulated
were not in order, and accordingly allowed the appeals filed by the revenue in
part. The basic issues which form the core dispute have been dealt with in the
appeals filed by the assessees and disposed of, as noted supra, today.
5. Learned counsel for the appellant submitted that the conclusions of the High
Court have been arrived at without any discussion and reasons have not been
indicated as to why seal of approval was being put on the findings recorded by
the Tribunal.
6. Per contra, learned counsel for the revenue supported judgment of the High
Court. According to him, when views of Tribunal and first appellate authority
were being affirmed, there was no need to record reasons separately.
7. So far as the issues covered by judgment in C.A. No.4232 of 2003 etc. etc.
as noted above, are concerned, the order shall cover these appeals also.
8. In addition, question Nos. (iii), (v) and (vii) as noted in High Court's
judgment are concerned, need to be adjudicated afresh. It is true in an order
of affirmation, repetition of reasons elaborately may not be necessary. But
even then the arguments advances, points urged have to be dealt with. Reasons
for affirmation have to be indicated, though in appropriate cases they may be
briefly stated.
9. Recording of reasons is a part of fair procedure. Reasons are harbinger
between the mind of maker of the decision in the controversy and the decision
or conclusion arrived at. They substitute subjectivity with objectivity. As
observed in Alexander Machinery (Dudley) Ltd. vs. Crabtree (1974 L.C.R. 120),
failure to give reasons amounts to denial of justice.
10. In the aforesaid background, we remit the matter to High Court to consider
question Nos.(iii), (v) and (vii) afresh along with other matters covered by
judgment in C.A. No.4232 of 2003 etc. etc. disposed of today.
11. Appeals are accordingly disposed of with no order as to costs.