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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 ..... year 2001-02. It was admitted on 16.12.2009 to consider following substantial question of law:- "Whether the Tribunal misdirected itself in law as well as on facts in upholding the order passed by the Commissioner of Income Tax under Section 263 of the Act whereby the latter had reversed the order of the Assessing officer allowing deduction under Section 37 of the Act in respect of advertisement expenses?" 2. A few facts relevant for the decision of the controversy involved, as narrated in the appeal may be noticed. The assessee filed his return of income for the year under consideration on 31.10.2001 declaring income of Rs. 19,67,981/- disclosing income from business and other sources. On 31.3.2003, a revised return of income was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act by drawing inference from the documentary evidence which had been furnished in the proceedings under Section 143(3) of the Act before the Assessing Officer and held that the order passed by the Assessing Officer granting the said deduction was erroneous and prejudicial to the interest of the revenue. The assessee filed appeal before the Tribunal. Vide order dated 27.2.2008, Annexure P.1, the Tribunal dismissed the appeal. Hence the instant appeal by the assessee. 3. We have heard learned counsel for the parties and perused the record. 4. Learned counsel for the appellant-assessee referred to Annexure P.5 and submitted that following material had been produced by the assessee but the same was not considered by the CIT and the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23 Rs.9.12,720.00 2004-05 Rs.3,63,58,811.80 Nil 2005-06 Rs.6,97,03,915.00 Nil 2006-07 Rs.7,47,15,375.40 Nil Still further, reference to certain letters received from the foreign buyer in Russia was made whereby the assessee was asked to draw out effective planning for the promotion of the product as the goods received were lying unsold and incurring heavy demurrages. Reliance was placed on decision of the Allahabad High Court in CIT vs. A. Tellerv and Sons Pvt. Limited, 1972 Tax Law Reporter 581 (All.) in support of the contention. 5. On the other hand, learned counsel for the revenue submitted that the Tribunal had rightly decided the issue against the assessee and in favour of the revenue as the assessee had failed to produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural justice by judicial, quasi-judicial and even by administrative bodies. g. Reasons facilitate the process of judicial review by superior Courts. h. The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the life blood of judicial decision making justifying the principle that reason is the soul of justice. i. Judicial or even quasi-judicial opinions these days can be as different as the judges and authorities who deliver them. All these decisions serve one common purpose which is to demonstrate by reason that the relevant factors have been objectively considered. This is important for sustaining the litigants' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, for development of law, requirement of giving reasons for the decision is of the essence and is virtually a part of "Due Process". 7. Adverting to the factual matrix in the present appeal, perusal of the order dated 27.2.2008, Annexure P.1 passed by the Tribunal shows that the documents and the data produced by the assessee as mentioned above have not been taken into consideration. Therefore, the order does not satisfy the requirements as enunciated by the Apex Court noticed herein above. Thus, the substantial question of law is answered accordingly and after setting aside the order of the Tribunal dated 27.2.2008, Annexure P.1 which is passed in violation of the principles of natural justice as per the law laid down by the Apex Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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