Law:

Section:

Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Orders of - Assessment year 1993-94 - Whether where Tribunal allowed assessee's claim of deduction in respect of certain expenditure by following its earlier decisions without making any reference to narration of facts and without recording any findings and reasons for allowing said claim in earlier years, order passed by Tribunal was to be set aside - Held, yes FACTS The Assessing Officer disallowed assessee's claim of deduction in respect of royalty payment. The Assessing Officer also treated expenditure of certain sum as unreasonable and not deductible as per the provisions of section 40A(2) and section 35A. On appeal, the Tribunal by following its earlier decisions allowed both the expenditures and set aside the order of the Assessing Officer. On appeal : HELD A mere perusal of the order of the Tribunal showed that neither was there a reference to narration of facts, nor discussion nor finding much less categorical finding and nor any reasoning. What was present in the impugned order was only the 'conclusion'. It may be good for the parties to appeal because they are more concerned with the eventual conclusion but not much concerned as to how that conclusion is reached. At least the winning side is least concerned with reasoning. It is the losing party who is more concerned with non-assigning of the reasoning which led to the decision against it. [Para 4] In the instant case, one could not know the facts of the case, the issue raised, issue decided in earlier years and the year in question, what was the reasoning of the Tribunal in the earlier years' cases which according to the Members went in favour of the assessee. It was neither mentioned, nor quoted, nor enclosed by way of annexure so that the same could be read for deciding the appeal. In the absence of any of those things on record, it could not be known 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 so-called decisions of the earlier years contained any reasoning or not. Mere mentioning in the order a number of cases was of no consequence because…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492