K.RAMASWAMY, D.P.WADHWA
Nandlal Tejmal Kothari – Appellant
Versus
Inspecting Assistant Commissioner Of Income Tax – Respondent
ORDER
The controversy raised in this appeal is covered by the judgment of this Court in C.B. Gautam v. Union of India1 wherein it was held that :
"31. The recording of reasons which lead to the passing of the order is basically intended to serve a two-fold purpose :
(1) that the "party aggrieved" in the proceeding before (sic the appropriate authority) acquires knowledge of the reasons and in a proceeding before the High Court or the Supreme Court (since there is no right of appeal or revision), it has an opportunity to demonstrate that the reasons which persuaded the authority to pass an order adverse to his interest were erroneous, irrational or irrelevant, and
(2) that the obligation to record reasons and convey the same to the party concerned operates as a deterrent against possible arbitrary action by the quasi-judicial or the executive authority invested with judicial powers.
42. We realise that if order for compulsory purchase of the property is made hereafter the intending vendor will suffer to some extent by reason of the fact that he will get the purchase amount several years after the time he would have got it had the impugned order
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