TMI Blog2015 (5) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... y without discussing as to how the fact situation of the case fits into peak credit theory and we find from the grounds of appeal filed before him that no such ground was raised. The additions were made purely based on facts, unless the facts were duly verified by the AO, the addition should not have been deleted. The CIT(A) in the impugned order had not dealt with the facts of the case, he simply referred to certain case laws governing the peak credit theory which is not the germane to the issue on hand before him. The impugned order gives no reason which would indicate as to why the additions are deleted. The order is bereft of reasons and does not discuss the facts of the case. Therefore, the order suffers from the vice of being an order without reasons. The Hon'ble Supreme Court held in the case of CCT Vs. Shukla Brothers [2010 (4) TMI 139 - SUPREME COURT OF INDIA] held that, recording of reasons is an essential feature of providing justice and in fact is the soul of orders. Further, the Supreme Court in the case of Kranti Associates (P) Ltd. Vs. Masood Alam Khan [2010 (9) TMI 886 - SUPREME COURT OF INDIA] has summarized the principles for recording reasons. Thus the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh deposits in Standard Chartered Bank, saving bank account No. 44610327529. 7. Any other ground that may be raised during the course of appeal proceedings . 2. The brief facts of the case are as under: The respondent-assessee is an individual, is in the business of trading 'readymade dupattas' and in dyeing of 'white dupattas' into 'coloured dupattas' of customer's choice and also running 'diagnostics' under name and style of 'SRK Diagnostics' situated near princess Durreshewar hospital in old city. He filed the return of income for the Assessment Year (AY) 2009-10 on 30-07-2009 admitting income of ₹ 2,23,540/-. Agianst said return of income, the assessment was completed u/s. 143(3) of the Income Tax Act, 1961 [Act] vide order dt. 29-12-2011 by the ITO, Ward-5(1), Hyderabad at a total income of ₹ 1,03,28,739/-. While doing so, the Ld. Assessing Officer (AO) made addition of ₹ 79,02,500/- on account of cash deposited in savings account of the bank held in the name of the respondent-assessee on the ground that the assessee could not properly explain the source for cash deposited. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit card statement does not show any transaction of cash withdrawals and further more that the assessee failed to produce any evidence in support of sale of the jewelry of his wife and motor vehicle and opening cash balance. He further argued that the CIT(A) had misdirected himself in applying the peak credit theory in as much as the facts of the case does not justify the application of peak credit. Thus, CIT(A) failed to appreciate properly the evidence on record in support of the additions made by the AO. 6. On the other hand, the Ld. AR for the assessee relied upon the order of CIT(A) and submitted that the order of CIT(A) should be upheld. 7. We heard the rival parties and perused the orders of lower authorities. We find that the AO made addition because of failure of the respondent-assessee to furnish the evidence in support of the sources for cash deposit in the account of ₹ 79,02,500/- and as well as payment to credit card as ₹ 22,02,699/-. Apparently, it was only during the course of proceedings before the CIT(A), the respondentassessee filed the cash flow statement, wherein the sources for the above are supposed to have been explained. However, the AO o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) 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. (d) Recording of reasons also operates as a valid restraint of any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. (e) Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. (f) Reasons have virtually become as indispensable a competent of a decision making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. (g) Reasons facilitate the process of judicial review by superior Courts. (h) The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the life blood of judicial decision making justifying the principle that reason is the soul of justice. (i) Judicial or even quasi-judicial opin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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