Inaction of Income Tax Authority in disposing of series of representations: Calcutta HC directs to pass Speaking Order [Read Order]

The Calcutta High Court directed the respondent to pass speaking order in the matter of inaction of the Income Tax Authority in disposing of series of representations.

The Petitioner, Pramod Kumar Drolia, filed the writ petition under Article 226 of the Constitution of India being aggrieved by inaction on the part of the respondent Income Tax authority concerned in considering and disposing of the series of representations made by the petitioner and the last of such representation was made and details of the grievance would appear from the said representation.

“Nemo debetesse judex in propria causa” and “Audi alterem partem” are two pillars of natural justice. Speaking order or reasoned order is considered the third pillar of natural justice. A reasoned decision is called a reasoned decision because it contains reasons of its own in its support. When the adjudicating body provides the reason behind their decision, the decision is treated as the reasoned decision.

Speaking order introduce fairness in the administrative power. it helps in minimizing arbitrariness and excluding to the extent it can. It maintains the right for reason as what is the reason behind any order, which is an indispensable part of a sound judicial system. it is the best practice of good administration.

The grounds on which the record of reasons is important was held in the judgment of CIT v. Walchand co. Ltdand the grounds are:

1. When the party aggrieved claims that the order passed by the authority in the case is erroneous
2. The record of reasons operates as a deterrent against the similar cases
3. For the satisfaction of the parties and other authorities while reviewing the order passed. If the order passed is appealed, the appellate court requires to understand what reasons weighted for the decision otherwise such decision which is not recorded becomes deprecated

The Bench of Justice Md Nizamuddin observed that “The writ petition is disposed of by directing the respondent authority concerned to consider and dispose of the aforesaid representation of the petitioner in accordance with law and by passing a reasoned and speaking after giving an opportunity of hearing to the petitioner or his authorized representatives within a period of four weeks from the date of communication of this order.”

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