2005 (2) TMI 22

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....n the circumstances of the case and in law, the Income-tax Appellate Tribunal was justified in holding that expenditure made on account of royalty payment was allowable as revenue expenditure? 2. Whether, on the facts and in the circumstances of the case and in law, the Income-tax Appellate Tribunal was justified in allowing expenditure of Rs. 10,39,045 treated by the Assessing Officer as unreasonable and not deductible as per the provisions of section 40A(2) and section 35A of the Income-tax Act, 1961?" None for the appellant. Heard Shri G.M. Chafekar, learned senior counsel with Shri D.S. Kale, learned counsel, for the assessee. The issue in question arises out of the assessment year 1993-94. We feel it appropriate at the outset,....

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....ided in it favour. It is the losing party who is more concerned with non-assigning of the reasoning which led to the decision against them. We feel most appropriate to quote the subtle observations of the Supreme Court made from time to time consistently reminding the courts in the country of the need to assign the reasons by any quasi-judicial, judicial as also by administrative authorities in support of their conclusions. These observations came to be made in one of the recent decisions by their Lordships in the case of D.P. S. Rural Regional Bank v. Munna Lal Jain, AIR 2005 SCW 95. The learned judge A. Pasayat speaking for the Bench held: "Para. 18. It needs no emphasis that when a court feels that the punishment is shockingly disp....

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....n earlier years and the year in question, what was the reasoning of the Tribunal in the earlier year cases which according to the learned Members went in favour of the assessee. It is neither mentioned, nor quoted, nor enclosed by way of annexure so that we may read the same for deciding the appeal. In the absence of any of these things on record, we are unable to know as to whether at all, the Tribunal decided the issue and if so, what was that issue which the Tribunal eventually decided, and whether the earlier year so-called decision contained any reasoning or not. Mere mentioning in the order by quoting a number of cases is of no consequence because it does not serve anybody's purpose. In substance, we as an appellate court cannot co....