2015 (10) TMI 322

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....for the assessment year 2007-08, claiming following substantial questions of law:- i) Whether the Tribunal is right in law and facts of the case in dismissing the appeal by way of a non speaking order without recording any independent finding or giving any reasoning, specifically in the light of the settled position of law so laid down by the Hon'ble Supreme Court in the case of Kranti Associates P. Limited and another vs. Masood Ahmed Khan and others, (2010) 9 SCC 496 which statutorily requires recording of reasons by a quasi judicial authority in support of its conclusions? ii) Whether the Tribunal is right in law and facts of the case in sustaining the disallowance of interest on borrowed capital of Rs. 3,43,673/-? ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....noticed. The appellant is a sole proprietor of a concern engaged in the business of manufacturing of batteries under the name and style of M/s Action Batteries at Jalandhar. He filed his return of income declaring net taxable income of Rs. 1,24,44,951/- on 31.10.2007 which was processed as such under section 143(1) of the Act. The case was taken up for scrutiny assessment under section 143(2) of the Act. The Assessing Officer vide order dated 8.5.2009, AnenxureA.5 disallowed interest on borrowed capital at the rate of 12% per annum on the amount of the interest free advances of Rs. 28,63,942/- for the whole of the year and made a disallowance of Rs. 3,43,673/- and assessed the income of the appellant at Rs. 1,34,48,302/-. Aggrieved by the o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ara 3.3 4. Page 97 (para 6.1) to page 98 Page 85-87, para 3.3.1 5. Page 99, para 6.2 Page 87-88, para 3.3.2 6. Page 100 (10th line from top) to page 101 (upto 17th line from top) Page 89-90,para 3.5 7. Page 101 (18th line from top) to close of paragraph Page 90, para 3.6 8. Page 101, para 7 The finding of the Tribunal   6. The Hon'ble Apex Court in M/s Kranti Associates Pvt. Ltd.'s case (supra) dealing with the requirement of passing a reasoned order by an authority whether administrative, quasi judicial or judicial, had laid down as under:- "51. Summarizing the above discussion, this Court holds: a. In India the judicial trend has always been to record reason....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onsidered. This is important for sustaining the litigants' faith in the justice delivery system. j. Insistence on reason is a requirement for both judicial accountability and transparency. k. If a Judge or a quasi-judicial authority is not candid enough about his/her decision making process then it is impossible to know whether the person deciding is faithful to the doctrine of precedent or to principles of incrementalism. l. Reasons in support of decisions must be cogent, clear and succinct. A pretence of reasons or 'rubber-stamp reasons' is not to be equated with a valid decision making process. m. It cannot be doubted that transparency is the sine qua non of restraint on abuse of judicial p....