High Court Remands ITAT's Non-Speaking Order for 2004-05; Demands Detailed Findings, Fair Hearing for Both Parties.

The HC found the ITAT's order for the assessment year 2004-05 to be non-speaking, violating natural justice by lacking independent findings or reasons. Consequently, the HC allowed the Revenue's appeal, setting aside the ITAT's order and remanding the matter for a speaking order. The Court instructed that if the Tribunal's composition has changed, a new order should be issued after hearing both parties. The Revenue was permitted to raise any previously undecided contentions. The ITA was allowed without cost, following these directions.

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Issues Involved:
- Legality, validity, and propriety of final order dated 07.11.2017 in IT(SS)A. No.77/JAB/2013 by Income Tax Appellate Tribunal Jabalpur Bench, Jabalpur pertaining to assessment years 2004-05, 2007-08 and 2008-09.

Comprehensive details of the judgment for each issue involved:

1. Issue 1: Whether the ITAT erred in sustaining the order of CIT(A) regarding the addition of profit from the sale of duplex houses.
- The ITAT sustained the order of CIT(A) who deleted the addition of Rs.9,75,000 on account of profit from the sale of 23 Duplex Houses without appreciating the seized documents.

2. Issue 2: Whether the ITAT erred in sustaining the order of CIT(A) regarding the relief on profit from the sale of land.
- The ITAT sustained the order of CIT(A) who allowed relief of Rs.3,89,00,000 on account of profit on the sale of land without appreciating the seized documents.

3. Issue 3: Whether the ITAT erred in sustaining the order of CIT(A) regarding unaccounted investment in plot/land.
- The ITAT sustained the order of CIT(A) who deleted the addition of Rs.11,75,00,000 on account of unaccounted investment in plot/land without appreciating the seized documents.

4. Issue 4: Whether the ITAT erred in not appreciating the loose papers found and seized from the assessee.
- The ITAT did not appreciate the fact that loose papers were found and seized from the assessee, and the assessee was unable to explain the same during the assessment proceedings.

5. The High Court found that the Tribunal's order for the assessment year 2004-05 was non-speaking, violating the principle of natural justice by not providing independent findings or reasons. The Court framed a new substantial question of law regarding this issue and concluded that the Tribunal failed to record reasons and findings for this assessment year. Consequently, the appeal by the Revenue was allowed, setting aside the Tribunal's order for being non-speaking and remanding the matter for a speaking order. The Court directed that if the composition of the Tribunal has changed, a speaking order should be passed after hearing both parties. The Revenue was given the liberty to raise any contentions not decided in the current order. The ITA was allowed without cost following these directions.

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