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2015 (5) TMI 1252 - AT - Income TaxRevision u/s 263 - Non application of mind to the material available on record by AO - Commissioner found that the assessee claimed Duty Drawback from income, payment of sales commission, payment of cash exceeding ₹ 20,000/-, VAT returns, charity and donation, job work charges as expenses in the return of income, but AO has not made any reference in the assessment order about all its genuineness or allowability of the claim - HELD THAT:- The assessment proceeding before the AO is a judicial proceeding u/s 136. Therefore, AO is bound to pass a speaking order. Reason for conclusion reached shall be reflected in the assessment order itself. AO is expected to dispose the issues raised by the assessee and record his own reasoning for allowing or disallowing the claim of the assessee, in accordance with law. The order of the AO is subject to further appeal/revision before the higher authorities. In this case, admittedly, the AO has not discussed anything in the assessment order regarding issues raised by the Commissioner. Hence, it shows non- application of mind by the Assessing Officer. Therefore, recording of the reasons is all the more mandatory for the appellate/revisional authorities to appreciate the reasons for the conclusions reached by the AO in his order. It is a well settled principle of law that the reasons for conclusion reached in a judicial order shall contain in the impugned order itself. In other words, reason for the conclusion arrived in a judicial/administrative order cannot be substituted by way of filing additional document or affidavit before the higher forums. Appeal of the assessee is dismissed.
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