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TMI Blog2014 (10) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... s not satisfy the requirements as enunciated by the Apex Court – thus, the order of the Tribunal is passed in violation of the principles of natural justice – the matter is to be remitted back to the Tribunal for fresh decision – Decided in favour of asseessee. - ITA No. 552 of 2008 (O&M) - - - Dated:- 3-9-2014 - Ajay Kumar Mittal And Fateh Deep Singh,JJ. For the Appellant : Mr. Sanjay Bansal, Sr. Advocate with Ms. Rajni Pal For the Respondent : Mr. Vivek Sethi, Advocate ORDER Ajay Kumar Mittal,J. 1. This appeal has been preferred by the appellant-assessee under section 260A of the Income Tax Act, 1961 (in short, the Act ) against the order dated 27.2.2008, Annexure P.1, passed by the Income Tax Appellate Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed commission of Rs. 92,16,009/- on sale of coffee in Russia from the said two parties and this commission was being received on account of indirect export in lieu of which, the assessee had to incur the expenses for promotion of the business in Russia. Vide order dated 27.2.2004, Annexure P.3, assessment was completed at a total income of Rs. 23,51,256/- under Section 143(3) of the Act. The Assessing Officer granted deduction claimed by the appellant towards advertisement expenses under Section 37 of the Act on the basis of documentary evidence furnished. The Commissioner of Income Tax (CIT) exercising power under Section 263 of the Act passed an order dated 6.10.2004, Annexure P.2 reversing the claim for deduction allowed by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Page 37-39 (of paper book 1) iv) Copy of letter dated 6.6.2000 of M/s Zvesda Media, Moscow addressed to the assessee. Page 40 (of paper book Sr.No. Particulars Remarks v) Copy of bank certificate issued by the assessees banker i.e. Punjab Natinal bank, Jalandhar certifying remittance of US $ 95,500 by the assessee through his current Account No.3087 with the said bank to M/s Karinway Trading Limited UK on account of advertisement expenses. Page 41 (of paper book 1) vi) Photographs of the hoardings, stalls, banners etc. therein substantiating the advertisement compaign carried out in Russia. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advertisement expenses had been incurred by the assessee. It was also argued that major portion of the expenses incurred was prior to the sales made to the foreign buyer and in such a situation, the same was inadmissible. 6. The Hon'ble Apex Court in M/s Kranti Associates Pvt. Ltd. and another v. Sh. Masood Ahmed Khan and others, (2010) 9 SCC 496 while dealing with the requirement of passing a reasoned order by an authority whether administrative, quasi judicial or judicial, had laid down as under:- 51. Summarizing the above discussion, this Court holds: a. In India the judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. b. A quasi-judicial autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial accountability and transparency. k. If a Judge or a quasi-judicial authority is not candid enough about his/her decision making process then it is impossible to know whether the person deciding is faithful to the doctrine of precedent or to principles of incrementalism. l. Reasons in support of decisions must be cogent, clear and succinct. A pretence of reasons or 'rubber-stamp reasons' is not to be equated with a valid decision making process. m. It cannot be doubted that transparency is the sine qua non of restraint on abuse of judicial powers. Transparency in decision making not only makes the judges and decision makers less prone to errors but also makes them subject to broader scrutiny. (See David Shapiro in Defenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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