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TMI Blog2015 (5) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... e without conducting necessary investigation and without application of mind to the relevant material. According to the Ld. representative, the Assessing Officer called for the details, namely, bank statements, details of commission paid, TDS, audit report, the details of the parties who filed Form 15G, etc. The assessee also filed confirmation letters from the creditors before the Assessing Officer. Therefore, it is not correct to say, according to the Ld. representative, that the Assessing Officer has not conducted any necessary enquiry. The Ld. representative submitted that of course, the Assessing Officer has not referred anything in the assessment order with regard to nature of enquiry conducted and the documents examined by him. It does not mean, according to the Ld. representative, that the Assessing Officer has not applied his mind to the facts of the case. Referring to the each and every relief given by the Assessing Officer, the Ld. representative submitted that with regard to Duty Drawback, the assessee-firm earned profit even if the Duty Drawback was excluded from the gross profit. The Ld. representative further pointed out that comparison of Duty Drawback is to be made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f foreign agency commission under Section 40(a)(ia), no enquiry was conducted with regard to commission paid locally. The TDS details in respect of local agency commission was also not available on record. The assessee has also paid cash exceeding Rs. 20,000/- in contravention of Section 40A(3) of the Act. The Assessing Officer had not made any enquiry with regard to this and there is no reference made in the assessment order. For all these reasons, the Commissioner found that the Assessing Officer has not applied his mind to the material available on record. The Commissioner has concluded that the Assessing Officer had not conducted any necessary enquiry. Therefore, the order of the Assessing Officer is erroneous and prejudicial to the interests of Revenue. 5. We have considered the rival submissions on either side and perused the relevant material on record. The Commissioner found that the assessee claimed Duty Drawback from income, payment of sales commission, payment of cash exceeding Rs. 20,000/-, VAT returns, charity and donation, job work charges as expenses in the return of income. The Assessing Officer has not made any reference in the assessment order about all its genui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pass a reasoned order. The High Court was of the view that the Tribunal could not have substituted its own reasonings which were required to be recorded by the Assessing Officer. According to the assessee, all relevant aspects were placed for consideration and if the officer did not record reasons, the assessee cannot be faulted. We do not think it necessary to interfere at this stage. It goes without saying that when the matter be taken up by the Assessing Officer on remand, it shall be his duty to take into account all the relevant aspects including the materials, if any, already placed by the assessee, and pass a reasoned order." We find that the Punjab &Haryana High Court had an occasion to examine this issue in CIT v. Sunil Kumar Goel [2005] 274 ITR 53. The Punjab &Haryana High Court, after considering the judgment of the Constitutional Bench of the Apex Court in S.N.Mukherjee v. Union of India, AIR 1990 SC 1984, has observed as follows: " In S.N.Mukherjee v. Union of India, AIR 1990 SC 1984, a Constitution Bench of the Supreme Court discussed the development of law on this subject in India, Australia, Canada, England and the United States of America and after making ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns be recorded should govern the decisions of an administrative authority exercising quasi-judicial functions irrespective of the fact whether the decision is subject to appeal, revision or judicial review. It may, however, be added that it is not required that the reasons should be as elaborate as in the decision of a court of law. The extent and nature of the reasons would depend on particular facts and circumstances. What is necessary is that the reasons are clear and explicit so as to indicate that the authority has given due consideration to the points in controversy. The need for recording of reasons is greater in a case where the order is passed at the original stage. The appellate or revisional authority, if it affirms such an order, need not give separate reasons if the appellate or revisional authority agrees with the reasons contained in the order under challenge." In Testeels Ltd. v. N. M. Desai [1970] 37 FJR 7; AIR 1970 Guj 1, a Full Bench of the Gujarat High Court has made an extremely lucid enunciation of law on the subject and we can do no better than to extract some of the observations made in that decision. The same are (headnote of AIR 1970 (Guj): "The necess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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