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Section 254, read with section 246, of the Income-tax Act, 1961 - Appellate Tribunal - Orders of - Assessment year 1990-91 - Assessing Officer disallowed deduction claimed by assessee under section 43B on account of production incentive - On appeal, Commissioner (Appeals) without assigning any reason whatsoever, granted relief to assessee by allowing said deduction - Tribunal also dismissed appeal filed by revenue holding order of Commissioner (Appeals) as justified - Whether orders passed by Commissioner (Appeals) and Tribunal were cryptic to core and were grossly violative of one of facets of rules of natural justice namely, that every judicial/quasi-judicial body/authority must pass reasoned order which should reflect application of mind by concerned authority to issues/points raised before it - Held, yes - Whether, therefore, orders of Commissioner (Appeals) and Tribunal were legally unsustainable - Held, yes [Remanded back to Commissioner (Appeals) for fresh adjudication] FACTS The Assessing Officer, while finalising the assessment of the assessee under section 143(3), disallowed the deduction claimed by it under section 43B on account of production incentive. On appeal, the Commissioner (Appeals) without assigning any reasons whatsoever, granted relief to the assessee. On revenue's appeal, the Tribunal dismissed the same holding that the order of the Commissioner (Appeals) was justified. On revenue's appeal : HELD The orders passed by the Commissioner (Appeals) and the Tribunal were cryptic to the core and were grossly violative of one of the facets of the rules of natural justice, namely, that every judicial/quasi -judicial body/authority must pass a reasoned order which should reflect application of mind by the concerned authority to the issues/points raised before it and, therefore, the same were liable to be set aside.[Para 6] The requirement of recording of reasons and communication thereof has been read as an integral part of the concept of fair procedure. The necessity of giving reasons flows from the concept of rule of law which constitutes one of the cornerstones of the constitutional set up. The Administrative Authorities chartered with the duty…

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