2013 (7) TMI 692

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....ich are read as under: "2. (A) That the CIT (A) is not justified in making arbitrary disallowance of Rs.15,00,000/- on the ground of non availability of the reasons variation in the GP Ratio, which had been filed alongwith the GP/ NP comparative chart. A copy of the same had again been filed on 03.01.2011 alongwith the application of rectification u/s 154 of the I. T. Act filed on 03.01.2011 with the Ld. Assessing Officer. As required by the Ld. Assessing Officer during the Assessment proceedings confirmation copy of the sales and purchase also filed with the Ld. Assessing Officer. The Ld. Assessing Officer made a disallowance, without there being any supporting evidence and not putting rely on the audit report already submitted with the L....

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.... was given and the appellant has chosen not to appear or to file any written submissions, the appeal is being decided on merits on the basis of statement of facts and the grounds of appeal and the material available on record. 5. I have gone through the assessment order. After careful consideration of the facts of the case, the Assessing Officer is justified in making the addition since no explanation was given for the trading results shown in the return of income." 3. We have heard rival arguments of both the parties and carefully perused the material placed before us, inter-alia, assessment order and the impugned order of the Ld. CIT (A). 4. The Ld. Counsel for the assessee pointed out that the CIT (A) has decided the issue without aff....

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....se no explanation was given for the trading results shown in the return of income. 7. First of all, we may clarify that we are not condoning the fault on the part of the assessee made by it before the authorities below. However, as it is apparent from the observations of the Ld. CIT (A) in para 4.5 and 5 of the order, the Ld. CIT (A) dismissed the appeal without even analyzing the issue or recording his specific findings on the said issues raised in the grounds of appeal before him. A mere glance in the impugned order reveals that the order passed by the CIT (A) is cryptic and grossly violative of one of the facets of the rules of natural justice. It is a well accepted rule that every judicial/ quasi-judicial body/ authority must pass a we....

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....to point out that a decision does not mean merely a conclusion but it embraces within its fold the reasons forming basis for the conclusion. 8. As we have already observed, the impugned order suffers from lack of reasoning and is not a speaking order on any of the grounds and issues raised by the assessee (enclosed with form no. 35 as annexure-B). 9. In the situation, we consider it fair and appropriate to set aside the order of the CIT (A) and to restore the matter to his file for deciding the issues/ grounds raised by the assessee before it. The Ld. CIT (A) shall decide all the grounds, issues and contentions afresh in accordance with law, after allowing sufficient opportunity to both the parties. Needless to say that the CIT (A) shall ....