The Bombay High Court held that the tribunal failed to exercise jurisdiction by not upholding the petitioner’s contention based on the Doctrine of Bias.
The order made by the Goa Administrative Tribunal (Tribunal) in Appeal warrants interference, because, the Tribunal, applied incorrect principles whilst considering the issue of bias raised by the petitioner, in the context of the order, made by Ashok Rane, the Additional Commissioner of Commercial Taxes (First Appellate Authority). He submitted that the correct test is not actual bias but the reasonable apprehension of the bias or reasonable likelihood of bias.
He submitted that the assessing officer had already made an adverse order against the petitioner for the Assessment Year 2008-09. The appeal against the order and the appeal against order for the Assessment Year 2010-11, came up for consideration before AO, who, by then, had become the Appellate Authority.
The AO recused from hearing the appeal for the Assessment Year 2008-09 but despite the protest of the petitioner, proceeded to hear and dispose of the appeal for the Assessment Year 2010-11.
The petitioner had expressed reasonable apprehension of bias and such concerns could not have been brushed aside by AO or for that matter the Tribunal.
In this manner, the petitioner was deprived of the right of an effective appeal and on this ground along relief is due to the petitioner in terms of prayer clause (d) to the petition.
Mr. Pangam, the learned Advocate General submitted that there was no question of bias involved because Shri Ashok Rane was concerned with a question of law. He submitted that merely because Mr. Rane had taken a particular view on the law, as an Assessment Officer, that did not preclude him from deciding an appeal involving a similar question of law.
The division bench of Justice M.S.Jawalkar and M.S.Sonakheld that Ashok Rane, ought not to have taken up and disposed of the petitioner’s appeal against the order for the Assessment Year 2010-11. The Tribunal, with respect, erred or rather failed to exercise jurisdiction vested in it, in not upholding the petitioner’s contention based on the Doctrine of Bias, in the peculiar facts and circumstances of the present case.
“As a result, the impugned orders dated 14.01.2019 made by Shri Ashok Rane as the First Appellate Authority and the order of the Tribunal dated 27.02.2020 upholding the same, are liable to be set aside and are hereby set aside. The petitioner’s appeal against the order dated 29.03.2014 is now restored to the file of the First Appellate Authority, which shall dispose of such appeal on its own merits and in accordance with law as expeditiously as possible and in any case within two months from the date of production of an authenticated copy of this order,” the Court said.
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