TMI Blog2013 (7) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... afone Essar Ltd. Vs. DRP(2011 (12) TMI 22 - Delhi High Court) held it is obligatory on its part of the quasi- judicial body to ascribe cogent and germane reasons as the same is the heart and soul of the matter - a decision does not mean merely a conclusion but it embraces within its fold the reasons forming basis for the conclusion - set aside the order of the CIT (A) and to restore the matter for deciding the issues/ grounds raised by the assessee before it – appeal decided in favour of assessee. - ITA No.1397/DEL/ 2012 - - - Dated:- 12-7-2013 - Shri G. D. Agrawal And Shri C. M. Garg,JJ. For the Petitioner : Shri D. C. Agarwal, Adv, Ms. Sudha Gupta For the Respondent : None ORDER Per C. M. Garg, J M: This appeal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the assesee the same is open for verification and duly recorded and duly recorded and audited transaction of the accounts of the company, hence band in law. (B)Alternatively and without prejudice to the above, the assessee disputes the quantum of addition." 2. Briefly stated to the facts giving rise to this appeal are that during the assessment, the case was selected for scrutiny and the notice u/s 143(2) of the Income Tax Act, 1961 (for short the Act) was issued and served on the assessee. The Assessing Officer noticed that there was a sharp decline in the gross profit ratio of the assessee during the year. When the assessee was require to explain the fall in GP rate and to furnish comparative statement of GP rate for preceding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions of the assessee. 6. From the assessment order, we observe that the Assessing Officer is specifically mentioned that when the assessee was asked to explain the fall in GP rate and to furnish comparative statement of GP rate for preceding three years along with details and reasons for variations in the GP rate, then the, assessee merely furnished comparative chart of GP rate in stead of explaining and substantiating the reasons for fall in GP rate. The Assessing Officer decided the issue by making an addition of Rs.15,00,000/- on estimated basis. From the impugned order para 4.7 and 5 is reproduced hereinabove, we observe that the CIT (A) simply noted that more than enough opportunity was given to the appellant and appellant had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled and shall state the points for determination, the decision thereon and the reasons for the decision. The requirement of recording of reasons and communication thereof by the quasi-judicial authorities has been read as an integral part of the concept of fair procedure and is an important safeguard to ensure the observance for the rule of law and procedure. The observance of the same introduces clarity, checks the introduction of extraneous or irrelevant considerations and minimizes the arbitrariness in the decision making process of the judicial and quasi judicial authorities. Hon'ble Supreme Court in the case of Mukhtiar Singh Vs. State of Punjab, (1995) 1SCC 760 (SC) and Hon'ble jurisdictional High Court of Delhi in the case of V ..... X X X X Extracts X X X X X X X X Extracts X X X X
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