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the Constitution?
The defendants actions are discretionary and arbitrary
Article 14 strikes at arbitrariness in executive/administrative action because any action that is
arbitrary must be necessarily involve the negotiation of equality. Further, one does not have to
confine the denial of equality to a comparative evaluation between two people to arrive at a
conclusion of discretionary treatment.
protection by law.
Moreover, Article 14 is invoked to mitigate the dangers of administrative discretion and
arbitrariness. Article 14 is a very meaningful guarantee against any action of the Administration
which may be arbitrary, discriminatory and unequal.2
An example of arbitrary implementation of administrative action is Section 6 (4) of the U.P.
Industrial Disputes Act, 1947 which authorized the state to remit an order of the labour tribunal
for reconsideration of the adjudicating authority and that authority was to submit the award to the
government after reconsideration. Section 6 (4) did not require the government to hear the parties
before remitting the award to the concerned adjudicating authority, the government was not
required to give reasons for remitting the award; the Government was not required to inform the
authority the specific points on which it was to reconsider the award. In B.B. Rajwanshi v. State
of Uttar Pradesh,3 the Supreme Court declared Section 6(4) unconstitutional under Article 14.
The court observed that1 A.L. Kalra v. P&E Corpnog India ltd., AIR 1984 SC 1361
2Shrinivas Rao v. J. Veeraiah, AIR 1993 SC 929
The provision cannot be upheld in the absence of necessary statutory guidelines for the exercise
of the power conferred by it having regarded the fact that proceedings before the labour court of
industrial tribunal is in the nature of quasi-judicial proceedings where parties have adequate
opportunity to state their respective cases, to lead evidence and make all their submissions.
There are procedural safeguards subject to which power has to be exercised, these include
natural justice, recording of reasons for decisions, provision of appeal to higher authority etc.4
Further, it has been held that any penalty disproportionate to the gravity of misconduct would be
violative of Article 14.5
In the present case, the actions of the assessing officer are discretionary and arbitrary as he
refused all of the plaintiffs claims out of anger. Moreover, no reasons or justifications have been
given by the defendant as to the quantum of punishment meted out and the basis for making the
best judgment assessment.
Moreover, even if the IT act itself is valid, it does not mean that the actions of the defendant,
which are in pursuance of his own interpretation of the act have to be held valid and intra vires.
There is always a difference between a statute and the action taken under the statute i.e. the
statute may be valid and constitutional but the action taken under it might be invalid.
It is now considered that non-compliance with the rules of natural justice amounts to
arbitrariness violating Article 14.6
Article 14 guarantees a right of hearing to the persons adversely affected by an administrative
order. The audi alteram partem rule, in essence enforces the equality clause in Article 14 and it is
applicable not only to quasi-judicial bodies but also to administrative orders adversely affecting
the party in question unless the rule has been excluded by an Act in question. 7 The instrument of
natural justice is an integral part of guarantee of equality assured by Article 14.8
However, in the present case, the defendants actions are a direct violation of the rule of audi
alteram partem where the plaintiff has been penalized without being heard. Moreover, the
plaintiff had valid reasons for not being able to file the exact or timely returns. While she was not
able to do so due to occupational hazards, the defendant failed to give her a reasonable chance of
presenting her case. On the contrary, the defendant rejected all her claims in anger, without
weighing them based on their merits.
Therefore, the defendant has violated the rules of natural justice as guaranteed under article 14.
6 Rajasthan State Road Transport corporation v. Bal Mukunda Bairwa, (2009) 4 SCC 299
7 Union of India v. Amrik Singh, AIR 1991 SC 564
8 Maneka Gandhi v. Union of India, (1978) 2 SCJ at 350
Similarly, the discretion of judicial officers is not arbitrary as the law provides for revision by
superior courts of orders passed by subordinate courts.12 The same principle has been extended to
discretion given to quasi-judicial authorities, e.g. rent controller, disciplinary authority etc.13
Therefore, in the present case, the actions of the defendant or the laws under which these actions
have been taken cannot be held arbitrary and discretionary. The Income Tax Act itself provides
for various procedural safeguards in the exercise of administrative powers. An appeal lies before
the Commissioner of Appeal against the actions taken by an Assessing Officer. Moreover, the
same has been done in the present case. Further, the Assessing Officer must be assumed to have
exercised his discretionary powers in a reasonable and rational manner.14 Actions and powers
cannot be held arbitrary based on the possibility that despite the guidelines in the provisions
providing for such power may be exercised unreasonablly.15
Moreover, the mere fact that some hardship or injustice was caused to someone is no ground to
strike down the action altogether if otherwise it appears to be just, fair and reasonable and not
unconstitutional.16 The Act provides a person with a reasonable opportunity of being heard and
the same was provided to the plaintiff twice. However, her inability to comply with the requests
of the defendant and failure to appear for hearings is her own fault.
The actions of the defendant cannot be held against the rules of natural justice
It is an ex parte hearing and the plaintiff was given reasonable opportunities to be heard,
however she failed to comply with any of them.