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TMI Blog2020 (3) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... g any finding on the evidence that were placed before it in relation to cash credit entries in the books of the appellant on the facts and circumstances of the case? (ii) Whether the Tribunal was justified in law in holding that the appellant has not proved the credits as appearing in the books of the appellants? (iii) Whether the tribunal was justified in law in rejecting the genuineness of the trade creditors when the amounts paid to the same creditors in the same financial year has been accepted by the Department? 2. After hearing the learned counsel for the parties, in our opinion, the following substantial question of law also arises for consideration: (iv) Whether the order passed by the Tribunal is cryptic and suffers from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the first appellate authority in relation to the addition made against five credit entries as mentioned above. In the aforesaid factual background, this appeal has been filed. 4. Learned Senior counsel for the appellant has submitted that several documents were filed before the Assessing Officer as well as Commissioner of Income Tax (Appeals) and the tribunal. However, the aforesaid documents have not been considered by the authorities. It is further submitted that the tribunal has failed to appreciate the material placed before it in support of the purchase of material and payment made for the same and the tribunal has not given any finding in respect of the material which were produced before it. It was further submitted that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has produced self-serving documents from which no inference can be drawn that the transactions in question are genuine. It is further submitted that three ingredients are required to be satisfied viz., the identity of the creditor, the genuineness of the credit and the credit worthiness of the creditors. In the instant case, the assessee has failed to prove the identity of the creditors. In support of the aforesaid submissions, reliance has been placed on the decision of the Supreme Court in the case of 'COMMISSIONER OF INCOME-TAX V. P.MOHANANKALA',291 ITR 278 (SC) AND 'COMMISSIONER OF INCOME-TAX V. P.R.GANAPATHY',(2012) 210 TAXMAN 572 (SC). 6. We have considered the submissions made by learned counsel for the parties and have perused th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was also sought for by the Commissioner of Income Tax (Appeals) dated 11.10.2004. It is also not in dispute that the assessee had filed the aforesaid documents before the tribunal. However, the tribunal instead of recording the reasons has recorded the conclusions. 8. It is well settled law that Supreme Court in the case of 'S.N. MUKHERJEE V. UNION OF INDIA', (1990) 4 SCC 594 has held that the decisions of this Court referred to above indicate that with regard to the requirement to record reasons the approach of this Court is more in line with that of the American courts. An important consideration which has weighed with the court for holding that an administrative authority exercising quasi-judicial functions must record the reasons for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative materials placed by the learned representative before us, we are of the considered view that the credit balances objected to by the Assessing Officer still stand unproved. In the circumstances of the case, we do not have any option, but to confirm the order of the Commissioner of Income Tax (Appeals) on this point." 11. From perusal of the order passed by the tribunal, it is evident that the order is cryptic and suffers from the vice of non application of mind. The tribunal has neither considered the material placed by the assessee before the Commissioner of Income Tax (Appeals) nor has considered the material placed before it and in a cryptic and cavalier manner has dismissed the appeal preferred by the assessee. Therefore, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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