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2019 (8) TMI 799 - AT - Income TaxDisallowance of credit notes for software consulting and support services to AE - the assessee stated that he has earned more margin than the margin prescribed under the safe harbour rules - assessee claimed that no TP adjustment required as it satisfied ALP - AO considering the credit notes as undisclosed income and also state that this is not a international transaction - CIT(A) not adjudicated all grounds and dismissed appeal just stating that she found force in the arguments of the AO - effect of not passing speaking order by CIT(A) - HELD THAT:- The Ld. first appellate authority has simply dittoed the observations of the AO and has upheld the findings of the AO without even examining the observations of the AO vis-a-vis the objections/contentions of the assessee. It is our considered opinion that it was incumbent upon Ld. first appellate authority to pass a speaking order after proper appreciation of the facts before her. Hon'ble Apex Court in the case of Kapoorchand Shrimal [1981 (8) TMI 2 - SUPREME COURT] had stated in connection with the appeal before the Ld. CIT (A) that it is the duty of appellate authority to remove the errors in the order of authorities below and remit the issue with or without direction for reconsideration unless prohibited by law. Accordingly, since the Ld. CIT (A) has not passed a speaking order on this issue, we are of the considered opinion that the interest of justice will be served if this issue is remitted to the file of the Ld. CIT (A) with a direction to pass a speaking order after duly examining and considering all the contentions raised by the assessee. Accordingly, the appeal is restored to the file of the Ld. First Appellate Authority with directions. - the appeal of the assessee stands allowed for statistical purposes
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