Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 202 - AT - Income TaxJurisdiction u/s 263 - Revision - Ordered passed by the AO is unreasoned - an order erroneous or prejudicial to revenue - Held that:- It is obligatory on the part of the assessing officer to record reasons in the assessment order. Recording of reason would not only enable the revisional / appellate authorities to discharge their function effectively but also repose confidence in the system. Therefore, we are of the considered opinion that there was an error in the order of the assessing officer inasmuch as that the assessing officer has not recorded his reasons for reaching a conclusion - that a speaking order must speak for itself and a reference to show cause notice is uncalled for. It is also well settled principles of law that judicial order shall speak for itself and the reason for the conclusion reached in the judicial order shall contain in the order itself. Reason for a decision cannot be substituted or supplemented by way of an affidavit or otherwise - Commissioner of Income-tax has rightly exercised his powers u/s 263 of the Act. However, he ought not to have disallowed the claim of the assessee straight away. In other words, the Administrative Commissioner ought to have directed the assessing officer to examine the books of account in the light of provisions of section 40(a)(ia) and 40A(3) of the Act. Accordingly, the assessing officer is directed to examine the books of account in the light of provisions of sections 40(a)(ia) and 40A(3) of the Act and thereafter decide the issue in accordance with law without being influenced by any of the observations made by the Commissioner of Income-tax in the impugned order. The order of the Administrative Commissioner is modified to this extent - Decided against assessee.
|