TaxTMI 
TaxTMI 
2014 (5) TMI 435
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....bsp; "(1) Whether in the facts and circumstances of the case, the ITAT and CIT(A) were justified in law in restricting the addition without assigning any reasons when the invoking of the provisions of section 145 of the Act has been upheld? (2) Whether in the facts and circumstances of the case, the ITAT has not acted perversely in reducing and restricting the trading additions without assigning any reasons and making estimation over estimation.?" Substantial question of law in DB ITA No.125/2005 (Assessment Year 1997-98): "(1) Whether in the facts and circumstances of the case the ITAT and CIT(A) were justified in law in restricting the additions without assigning any reasons when the invoking of the provisions of section 145 of the Act has been upheld? (2) Whether in the facts and circumstances of the case, the ITAT & CIT(A) has not acted perversely in reducing and restricting the trading additions without assigning any reasons and making estimation over estimation.?" 3. ....
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....d, arbitrary and whimsical, there was no option except to remand the matter to the ITAT to revisit the issue afresh denovo in accordance with the guidelines, referred to therein. We shall refer to the order of the CIT(A) as well as ITAT a little later. 7. Counsel for the revenue submitted that in all these appeals, the orders have been passed by the ITAT in stereo-typed manner without referring to even contentions raised by the either side and in a routine and perfunctory manner, order has been passed and fully supported the judgment rendered by this Court in the case of CIT Vs. Ram Singh (supra). 8. Ld. counsel for the assessees, on the other hand, submitted that once the CIT(A) gave detailed order elaborating the submissions raised by both the sides and when order of the CIT (A) is detailed and when the matter was before the ITAT and the ITAT has simply affirmed the view of the CIT(A), then no reasoning was required by the ITAT. They, however, candidly agreed that the provisions of Sec.145(3) are applicable as has been held by the CIT(A) and that finding has been affirmed by the ITAT but they contended that while even the AO made estimates so also the CIT(A), and the ITAT had n....
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.... would be appropriate to quote finding of the CIT(A) as well as ITAT in two of the appeals out of this bunch (DB ITA No.37/2005) , which is reproduced ad-infra:- CIT(A) :- "I have gone through the various orders of the ITAT and the CIT(A) and the general trend adopted by all these Appellate Authorities was that a lump sum addition for any possible leakage of the revenue had been made. The A.R. has quoted cases where lesser G.P. Rate has been accepted. Considering the facts and circumstances of the case, in my view a lump-sum addition of Rs.3,00,000/- will be sufficient and reasonable. The appellant will get a relief of Rs.19,69,936/-" ITAT:- "After hearing both the parties and on perusal of material available on record, it appears that both lower authorities made/restricted the additions on estimate basis after applying section 145 for the reasons mentioned in the AO's order. However, by looking to the line of trade, the additions sustained by the CIT(A) are still looking on higher side. Therefore, we modify both the orders of the lowe....
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....ons raised on either side. In so far as the submission of counsel for the assessees that in one of the cases (CIT Vs. Mahendra Kr. Tiwari) (supra), this Court has held it to be a question of fact needless to mention that this Court vide order dt.31/07/2007 had specifically observed in Para No.8 as under:- "By way of foot-note, we may observe that we asked the counsel for the revenue as to whether in any of the Income Tax Appeals preferred from the group of Income Tax Appeals decided by the Income Tax Appellate Tribunal on 20.10.2004 i.e. impugned order, any substantial question of law has been framed and appeal admitted by this Court, the answer was in the negative." 13. As reveals from the record, counsel for the revenue was not able to lay hands on the similar other appeals already having been admitted as a substantial question of law by this Court earlier and therefore, the Court, by way of the above foot note, observed in such a manner. It may be pointed out that in the earlier bunch of cases, decided by this Court vide order dt. 21/01/2014, most of the appeals were admitted by this Court prior to the order of....
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....or CIT(A). We fail to understand as to how Tribunal has arrived to a conclusion in confirming, enhancing, reducing or deleting the estimation of income arrived at by CIT(A) & AO. The Tribunal is supposed to set out reasons in support of its decision by narrating full facts and discussing the issues in detail so that the person aggrieved knows why it has come to a particular conclusion. " 17. The principles fully hold the present cases also. In the entire order, reproduced supra in para-11 the Tribunal has not recorded any finding of fact and no reasons are assigned as to why the Tribunal does not agree with the finding recorded by the AO or CIT (Appeals) as the case may be and in our view, the present cases are also of the similar nature as has been decided by this Court in the case of CIT Vs. Ram Singh (supra). 18. Resultantly, the present bunch of cases are also identical to the bunch decided on 21/01/2014 (DB ITA No.117/2004, CIT Vs. Ram Singh) and this Court has also referred to judgments rendered by the Apex Court in the case of Kranti Associates (P) Ltd. Vs. Masood Ahmed Khan: (2010)9 SCC 496 where the Hon'ble Apex Court has desired what an authority whether administrat....