Law:

Section:

Section 254, read with section 68, of the Income-tax Act, 1961 - Appellate Tribunal - Order of - Whether Tribunal is duty bound to consider reasons given by appellate authority for its decision before upsetting order made by appellate authority - Held, yes - Assessee received a gift from non-resident Indian - Revenue authorities taking a view that assessee failed to prove genuineness of gift, added amount of gift to assessee's taxable income - On appeal, Tribunal without dealing with findings recorded by subordinate authorities, remanded matter back to Assessing Officer for disposal afresh - Whether in view of aforesaid legal position, impugned order passed by Tribunal was not sustainable - Held, yes [In favour of revenue] FACTS The assessee received gift worth Rs. 15,00,000 from one non-resident Indian. The Assessing Officer came to the conclusion that the assessee had failed to prove sound financial capacity of the said donor; had failed to establish the circumstances leading to gift; and had failed to establish that the money was received as gift only. He thus added the amount of gift to assessee's taxable income. On appeal, the Commissioner (Appeals) confirmed the addition. On further appeal, the Tribunal restored the matter to the file of the Assessing Officer for disposal afresh. On revenue's appeal: HELD The Tribunal had failed to appreciate that the Assessing Officer had granted opportunity to the assessee to prove the genuineness of the gift and creditworthiness of the donor but the assessee had failed to adduce any proof in this regard. The onus then could not have been shifted to the Assessing Officer without dealing with the findings recorded by the subordinate authorities. The Tribunal was duty bound to consider the reasons given by the appellate authority for its decision before upsetting the order made by the appellate authority. [Para 8] In the facts of the case it was apparent that the Tribunal had failed to undertake the aforesaid exercise and the impugned order was thus vitiated in law. [Para 9] In the circumstances, without expressing any opinion on the merits of the controversy the impugned order made by the Tribunal was to be quashed and…

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