TMI Blog2013 (9) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... s held that judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially - A quasi-judicial authority must record reasons in support of its conclusions - Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well - Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power - Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations - Reasons have virtually become as indispensable component of a decision m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght on record by the assessee? 3. Briefly, the facts necessary for adjudication of the controversy involved, as available on record, may be noticed. The assessee was engaged in the business of manufacture and sale of hand tools and had shown gross profit of Rs. 1,41,23,368/- on sales of Rs.10,32,07,794/- which worked out to 13.7% as against gross profit of Rs.1,03,72,313/- on sales of Rs. 7,59,09,692/- at the rate of 13.7% of the last year. The Assessing Officer vide order dated 28.3.2005, Annexure P.3 made an addition on account of goods purchased from two parties - M/s Rajiv Electrics Trading Company and Krishna Hardware and Mill Store. Depreciation on machinery purchased from these two parties was also disallowed. Thus, total addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal issues involved and allowing of appeal of the revenue by the Tribunal was against the principles of natural justice. 5. Learned counsel for the respondent-revenue on the other hand supported the order passed by the Tribunal. 6. After hearing learned counsel for the parties, we find force in the submissions of learned counsel for the assesse appellant. 7. The Hon'ble Apex Court in M/s Kranti Associates Pvt. Ltd. and another v. Sh. Masood Ahmed Khan and others, (2010) 9 SCC 496 while dealing with the requirement of passing a reasoned order by an authority whether administrative, quasi judicial or judicial, had laid down as under:- 51. Summarizing the above discussion, this Court holds: a. In India the judicial trend has always ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustaining the litigants' faith in the justice delivery system. j. Insistence on reason is a requirement for both judicial accountability and transparency. k. If a Judge or a quasi-judicial authority is not candid enough about his/her decision making process then it is impossible to know whether the person deciding is faithful to the doctrine of precedent or to principles of incrementalism. l. Reasons in support of decisions must be cogent, clear and succinct. A pretence of reasons or 'rubber-stamp reasons' is not to be equated with a valid decision making process. m. It cannot be doubted that transparency is the sine qua non of restraint on abuse of judicial powers. Transparency in decision making not only makes the judges and decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter. The learned CIT(A) has merely brushed these findings aside as irregularities . We find that these findings of the AO as detailed in the assessment order, are not irregularities . They are definite and firm finding of fact recorded on the basis of the investigation conducted. The allocation made by the learned CIT (A) on proportionate basis with reference to the earlier year, in our considered opinion, is not at all called for, particularly when in the earlier year no enquiry whatsoever is stated to have been got conducted by the AO. It is settled law that each year is independent and the rule of consistency notwithstanding, res judicata is not applicable to income tax proceedings, where the facts are materially different for two ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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