KISHORE JAGJIVANDAS TANNA Vs. K. RANGRAJAN

JUDGEMENT

(1.) This Writ petition is filed by Kishore Jagjivandas Tanna (hereinafter referred to as the "petitioner") impugning an order dated 22nd December 1987 passed by the respondent no.2 under Section 132(5) of the Income Tax Act 1961 (as it then stood).

(2.) The brief relevant facts of the case were as under :-

(3.) The 2nd contention raised on behalf of the petitioner is that the impugned order under Section 132(5) has been passed without following the mandatory rules of natural justice. Our attention has been drawn to the fact that the said order is based upon 3 statements said to have been made by the petitioner and the statement of Mr.Anoop K.Gupta who was the partner in M/s.Kushiram Biharilal. Counsel for revenue fairly conceded that the order has been passed without handing over a copy of these statements to the petitioner. A perusal of section 132(5), as it then stood, indicates that the final order should be passed after affording a reasonable opportunity to the affected person of being heard. If statements recorded were to be made the basis for passing the final order, then in our view, copies thereof ought to have been given to the petitioner in order to afford him a reasonable opportunity to meet the allegations. This, not having been done, the impugned order will have to be quashed and set aside and the matter would have to be remanded to respondent no.2 for passing a proper order after complying the rules of natural justice.