TaxTMI 
TaxTMI 
TaxTMI 
2015 (1) TMI 1515
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....making an addition of Rs. 7,21,463/- on account of payments through credit card under section 37(1) of the Income Tax Act, 1961, inspite of making adhoc additions to the income declared by the assessee. 6. That the Learned Assessing Officer has erred in law in initiating the penalty proceeding on the basis of intangible additions to the returned income. 7. That the Learned Commissioner of Income Tax (Appeals) has erred in law in confirming the impugned order of Learned Assessing Officer without offering a reasonable opportunity of being heard. 8. That the assessee was not medically fit to represent his case and the medical certificate in this regard is enclosed for the kind perusal of your good self. 9. The case was decided ex-parte by the Learned Assessing Officer and Commissioner of Income Tax (Appeals) and the assessee was unable to substantiate his case before the Income Tax Authorities. 10. The levy of penalty in assessee case would be an undue hardship to the assessee " 3. Facts of the case in brief are that the assessee was engaged in the business of electrical & labour contract and filed his return of income on 20.08.2008 declaring an income of Rs. 1,35,429/....
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....ill first week of January 2011 and not in a position to represent his case copy of medical certificate regarding his ill health IS enclosed. After 05.08.2010 to December no notice was legally served upon the assessee which was sent in the month of December as per assessment order. 4. That the assessee IS engaged in the business of electrical and labour contract and filed income tax return regularly his percentage of net profit from the business known as M/s Honey Electrical works, is as follows :- Asstt. Year 2006-07 1.50% (Already scrutinized) copy of enclosed. Asstt Year 2007-08 1.53% Asstt Year 2008-09 1.60% 5. That as per audit report filed timely with return of income and case already scrutinized A.Y. 2006-07. On above mentioned table, so the estimation of profit @ 8% on total contract is illegal and unjustified. 6. That the ITO also disallowed deduction under Chapter VIA which is also illegal as the assessee filed his income tax return online there is no need to submit any documents with the return. After receiving the assessment order and filing the appeal in your good self the assessee point out regarding above motioned submission he AO accept the claim of....
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....after considering the submissions of the assessee adjudicated the issue and as the assessee could not give any explanation to the AO on account of payment through credit card the addition was rightly confirmed. Similarly, there was no explanation regarding the gross profit rate, therefore, the addition sustained by the ld. CIT(A) was fully justified. 8. We have considered both the partied and carefully gone through the material available on the record. In the present case it is noticed that the ld. CIT(A) although reproduced the submissions made by the assessee but had not given any reason while rejecting the same. It is also noticed that the assessee raised the specific ground nos. 1, 2, 3 and 7 relating to the proper opportunity which was claimed to be not afforded to the assessee, however, the ld. CIT(A) considered those grounds as general in nature. It is also noticed that the AO passed the assessment order ex parte which shows that the proper opportunity of being heard was not afforded to the assessee and the ld. CIT(A) without bringing any cogent material in support of his decision confirmed the addition made by the AO. 9. In our opinion the impugned order passed by the ld.....
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....nd minimizes arbitrariness in the decision making process. Another reason which makes it imperative for quasi judicial authorities to give reasons is that their orders are not only subject to the fight of the aggrieved persons to challenge them by filing statutory appeal and revision but also by filing writ petition under article 226 of the Constitution. Such decisions can also be challenged by way of appeal under article 136 of the Constitution of India. The High Courts have the power to issue writs of certiorari to quash the orders passed by quasi judicial authorities / Tribunals. Likewise in appeal the Supreme Court can nullify such order / decision. The power of judicial review can be effectively exercised by the superior courts only if the order under challenge contains reasons. If such order is cryptic and devoid of reasons, the courts cannot effectively exercise the power of judicial review." 12. The Hon'ble Supreme Court in the case of Mangalore Ganesh Beedi Works Vs. CIT and another (2005) 273 ITR 56 has held as under: "Though in an order of affirmation in an appeal u/s 260A of Income Tax Act, 1961 repetition of the reasons elaborately may not be necessary, the arg....