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2009 (8) TMI 234 - HC - Income TaxPower of tribunal - We find merit in the contention that without recording a finding whether the assessee was denied sufficient opportunity the Tribunal could not direct further opportunity to be given. It is well-settled that in exercising the appellate power the Tribunal has to give reasons for its conclusion. For justifying its direction for giving further opportunity the Tribunal had to record a finding of denial of opportunity. - Order of the Tribunal is set aside and the matter is remanded to the Tribunal for fresh decision in accordance with law.
Issues:
Appeal under Section 260A of the Income-tax Act, 1961 against the order of the Income-tax Appellate Tribunal regarding fresh opportunity to the assessee and remanding the case back to the Assessing Officer for fresh adjudication. Analysis: The appellant, an educational institution, filed a return of business income without being registered under section 12AA or seeking exemption under section 10(23C) of the Income-tax Act, 1961. The Assessing Officer made additions to the declared income due to the assessee's failure to produce books of account and supporting documents, leading to initiation of penalty proceedings. The appeal of the assessee was dismissed based on non-cooperation and failure to produce material. The Tribunal, despite acknowledging the repeated failures of the assessee, decided to grant a fresh opportunity without providing reasons for its conclusion. The Tribunal's direction lacked a finding of denial of opportunity, which is essential for justifying such a decision. Citing legal precedents, it was emphasized that the Tribunal must give reasons for its conclusions and cannot reach arbitrary decisions. The judgment highlighted the duty of the Tribunal to consider all facts and laws before directing further opportunities. Therefore, the proposed questions of law were answered in favor of the Revenue, allowing the appeal and remanding the matter to the Tribunal for a fresh decision in accordance with the law.
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