TMI Blog2020 (3) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 the fact situation of the case, we have no option but to remit the matter. Since, we have arrived at the conclusion that the instant case is a fit case for remand. Therefore, it is not necessary for us to answer the substantial question of law which have been framed in this appeal. In the result, the order passed by the tribunal dated 26.02.2010 as well as the order passed by the Commissioner of Income Tax (Appeals) dated 22.04.2004 are hereby quashed. The matter is remitted to the tribunal to decide the matter afresh - I.T.A. NO.179 OF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a partnership firm engaged in the business of trading of silk sarees. The appellant for the assessment year 2001-02 filed its return on income and declared the income of ₹ 24,04,600/-. The return filed by the appellant was processed under Section 143(1) of the Act. The Assessing Officer by order dated 23.03.2004 assessed the total income of the appellant at ₹ 58,88,494/- as against ₹ 24,04,600/- but the Assessing Officer recorded a finding that five of the creditors viz., R Shivappa, V Lokeshmurthy, P Narasimha Swamy, R Kiran and BS Manjunath were not genuine creditors and addition was made to the income of the appellant. Being aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted. It is further submitted that there was no material before the Assessing Officer to record a finding that the creditors were the bogus creditors. It is further submitted that the tribunal has failed to take note of the documents in particular the ledger copy of the sundry creditors and the bank statement of the appellant for the period 01.04.2001 to 31.03.2002 in respect of the aforesaid creditors. It is also submitted that the order passed by the tribunal is cryptic and suffers from the vice of non application of mind. Learned Senior counsel for the appellant has also invited the attention of this Court to Section 40A(3) of the Act and has submitted that under the Section as it stood in relation to the assessment year 2001-2002, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, nobody appeared on behalf of the assessee. However, before proceeding further, it is apposite to take note of Section 250(4) of the Act, which provides that the Commissioner of Income Tax (Appeals) may before disposing of the appeal may make such further enquiry as he thinks fit and or direct the assessing officer to make enquiry and report the result of the same to the Commissioner of Income Tax (Appeals). Thus, the aforesaid provision enables the Commissioner of Income Tax (Appeals) to make such further enquiry as he thinks fit. The aforesaid provision also enables the assessee to file the material before the Assessing Authority in order to enable him to conduct further enquiry. Admittedly, the appellant had filed certain docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l as the supervisory jurisdiction of the High Courts under Article 227 of the Constitution and that the reasons, if recorded, would enable this Court or the High Courts to effectively exercise the appellate or supervisory power. 9. It is trite law that even a quasi-judicial authority is required to assign reasons for passing the order. In view of the decision laid down by the Supreme court in VICTORIA MEMORIAL HALL vs. HOWRAH GANATANTRIK NAGRIK , 2010 (3) SCC 732 , reasons were held to be the heartbeat of every conclusion, apart from being an essential feature of the principles of natural justice, that ensure transparency and fairness, in the decision making process. [SEE: MAYA DEVI VS. RAJ KUMARI BATRA AND OTHERS , (2010) 9 SCC 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the instant case is a fit case for remand. Therefore, it is not necessary for us to answer the substantial question of law which have been framed in this appeal. In the result, the order passed by the tribunal dated 26.02.2010 as well as the order passed by the Commissioner of Income Tax (Appeals) dated 22.04.2004 are hereby quashed. The matter is remitted to the tribunal to decide the matter afresh in the light of the observations made in this appeal by a speaking order. Let the aforesaid exercise be carried out within a period of four months from today. It is made clear that this court has not expressed any opinion with regard to merits of the case of the parties. Accordingly, the appeal is disposed of. - - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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