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TMI Blog2012 (8) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and circumstances of the case. 2. The order levying penalty u/s 271(1)(c) of the Act, is bad in law in as much as, the learned AO has neither reached any satisfaction nor has such satisfaction been recorded in the assessment order and consequently, the very initiation of proceedings u/s 271(1)(c) of the Act, is not in accordance with the requirement of sec. 271(1) of the Act and consequently, the order of penalty founded on the invalid initiation of penalty proceedings is liable to be cancelled. 3. Without prejudice to the above, the learned AO is not justified in levying a penalty of Rs.84,87,489/- u/s 271(1)(c) of the Act under the facts and in the circumstances of the appellant's case. 4. The learned AO failed to appreciate that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO initiated penalty proceedings u/s 271(1)(c) of the Act separately and levied the penalty of Rs.84,87,489/-. 6. Being aggrieved, the assessee preferred an appeal before the CIT(A) and raised the following grounds: "1. The order of the learned AO in so far as levying penalty u/s 271(1)(c) of the Act against the appellant is opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The order levying penalty u/s 271(1)(c) of the Act, is bad in law in as much as, the learned AO has neither reached any satisfaction nor has such satisfaction been recorded in the assessment order and consequently, the very initiation of proceedings u/s 271(1)(c) of the Act, is not in accordance with the requirement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit. The AO has called for confirmation letters. It has not been provided. Instead of shifting the burden by providing the details as to complete address etc., of the creditors, it has explained the reasons by saying that it fell into a debt trap and had no time to look into the affairs which itself is enough to prove that creditors are not genuine and evade tax thereon. It is also a case of filing of inaccurate particulars of income because even after auditors report, the gross receipt of Rs.37,066/- has not been added back in the computation sheet of total income. Thus on merit also the grounds of appeal is dismissed." 8. Now the assessee is in appeal. 9. The learned counsel for the assessee reiterated the submissions made before the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and the conclusion thereafter by the Court/Appellate authority. In our view the Ld. CIT(A) should have properly considered the arguments of the assessee as well as findings given by the Assessing Officer and thereafter he should have made independent findings either in favour or against the assessee. Considering the entire facts, we are of the opinion that the Ld. CIT(A) had not passed a proper order in the eyes of law. At this stage, we may refer to the decision of ITAT Ahmedabad Bench in the case of Gujarat Themis Biosyn Ltd. Vs. J.C.I.T., (2000) 74 ITD 339 (Ahd). The ITAT Ahmedabad Bench, while interpreting the provisions of section 250(6) of the I.T. Act, 1961 held as under: "The provisions of section 250(6) provides that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eason which makes it imperative for quasi judicial authorities to give reasons is that their orders are not only subject to the fight of the aggrieved persons to challenge them by filing statutory appeal and revision but also by filing writ petition under article 226 of the Constitution. Such decisions can also be challenged by way of appeal under article 136 of the Constitution of India. The High Courts have the power to issue writs of certiorari to quash the orders passed by quasi judicial authorities / Tribunals. Likewise in appeal the Supreme Court can nullify such order / decision. The power of judicial review can be effectively exercised by the superior courts only if the order under challenge contains reasons. If such order is crypti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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