KISHAN LAL vs UNION OF INDIA & ANR.

The Supreme Court held that the Central Board of Direct Taxes (CBDT) must provide reasons when rejecting an application under Section 220(2A) of the Income-Tax Act, as the decision is quasi-judicial in nature. The Court emphasized that principles of natural justice require a speaking order, especially when the decision impacts the interest amount payable by the assessee. The High Court's dismissal of the writ petition was overturned, reinforcing the necessity for reasoned decisions in such matters.