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"We do not want to mention as to how an FAA should write his order"

Started by CA.BHUPENDRASHAH, May 05, 2018, 12:01:52 PM

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Shailesh D. Mehta, Mumbai vs Income Tax Officer 17(3)(3), ... on 4 April, 2018
We have heard the rival submissions.We find that while deciding the appeals the FAA has not passed speaking and reasoned order. In his 21 pages'order we do not find any logic as to why he was confirming the order of the AO.He has reproduced orders of various judicial authorities without mentioning as to how they were applicable to the facts of the present case. We do not want to mention as to how an FAA should write his order.But,we would like to mention that as an appellate authority,he should give the reasons for approving or rejecting the claim made before him.We would like to refer to the case of Buildwell Assam P.Ltd. (133 ITR 336),wherein the Hon'ble Gauhati High Court has held as under:

"Section 250(6) of the I.T. Act, 1961, prescribes the manner of disposal of an appeal. An order must be in writing containing the points for determination and decision. The object is obvious. It enables a party to know the precise points decided in his favour or against him. Absence of formulation of points for decision or want of clarity in decision puts a party in a quandary. A decision against a party enables him to go up in appeal. A decision by its very nature must be firm and should not be vague and unclear. If there is a direction by the appellate authority to the ITO, the latter is bound to carry out the direction. Refusal to carry out a direction is a denial of justice and destructive of one of the basic principles in the administration of justice based on the hierarchy of the authorities. Therefore, when a subordinate authority is directed to carry out certain directions by a superior authority, the 4913/M/17-Shaillesh D.Mehta tenor and colour of the order of the superior authority must be firm, clear, certain, definite and without any ambiguity.
Considering the fact that order of the FAA is not a reasoned order,we are of the opinion that, in the interest of justice,the matter should be restored to his file for passing a reasoned and speaking order.He is directed to afford a reasonable opportunity to assessee and to consider the material submitted before us by the assessee.Effective Ground of appeal is allowed in favour,of the assessee,in part.

As a result,appeal filed by the assessee stands partly allowed. फलतःिनधा रती ारा दािखल क गई अपील अंशतः मंजूर क जाती है.[/font][/size]