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Supreme Court has held that Constitutional Courts will be failing their duties if they refuse reliefs sought, without stipulating adequate reason.

While emphasising on the necessity to pass a reasoned order, the bench referred to the case of Central Board of Trustees vs. Indore Composite Private Limited, wherein it was observed that an order bereft of reasoning causes prejudice to the parties because it deprives them to know the reasons as to why one party has won and other has lost.

Vishal Ashwin Patel approached the top court assailing an order of the the Division Bench of the Bombay High Court wherein it had  dismissed the writ petitions filed by him challenging the reopening of the assessment/re­assessment proceedings.

A bench of Justices MR Shah and BV Nagarathna found that the reopening of the assessment under Section 148 of  the Income Tax Act had been challenged on a number of grounds.

"None of the grounds raised in the writ petitions has been dealt with and/or considered by the High Court on merits. There is no discussion at all on any of the grounds raised in the writ petitions. The Division Bench of the High Court has dismissed the writ petitions in a most casual manner which is unsustainable....", noted the bench.

It was held that the High Court in exercise of powers under Article 226 of the Constitution of India was required to have independently considered   whether the question of reopening of the assessment could be raised in a writ petition and if so, whether it was justified or not.

Except stating that ‘we are not inclined to entertain writ petition’, nothing further had been stated by the High Court giving reasons for the disinclination to entertain the writ petitions, the bench further found.

Stating that the Court did not appreciate the High Court's manner of dealing with the petition, the bench said,

"When a number of issues/grounds were raised in the writ petitions, it was the duty cast upon the court to deal with the same and thereafter, to pass a reasoned order."

With this view, the Court allowed the appeal while remanding the matter to the High Court for deciding the writ petitions afresh on merits.

Case Title: Vishal Ashwin Patel vs. Assistant Commissioner of Income Tax Circle 25(3) & Ors.