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TMI Blog2015 (10) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Tribunal is violative of principles of natural justice and does not satisfy the requirements of a reasoned order. Consequently, the substantial questions of law are answered accordingly. The impugned order passed by the Tribunal dated 20.3.2014, Annexure A.7 is set aside and the matter is remanded back to the Tribunal to decide it afresh after hearing learned counsel for the parties in accordance with law. - ITA No. 233 of 2014 (O&M) - - - Dated:- 18-8-2015 - Ajay Kumar Mittal And Ramendra Jain, JJ. For the Petitioner : Mr. Ravish Sood, Adv For the Respondent : Mr. Vivek Sethi, Adv JUDGMENT Ajay Kumar Mittal, J. 1. The assessee has preferred this appeal under Section 260A of the Income Tax Act, 1961 (in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d facts of the case by failing to appreciate that in the light of substantial interest free funds and accumulated amounts in the capital account available with the appellant, in the absence of any nexus between the interest free advances given and the interest bearing funds borrowed by the appellant, no disallowance of interest on borrowed capital was liable to be made? v) Whether the Tribunal has erred in law and facts of the case by failing to appreciate that even otherwise as the amounts had been advanced by the appellant at different points of time during the year, therefore the disallowance of interest on borrowed capital of ₹ 3,43,673/- as regards the entire amount of advances aggregating to ₹ 28,63,942/- (supra), for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndependent finding or reasoning. Hence the instant appeal by the assessee. 3. We have heard learned counsel for the parties. 4. Learned counsel for the appellant submitted that the Tribunal has quoted the order of CIT(A) as it is without giving any reasons except that in para 7 of its order, it was stated that we do not find any infirmity in the order of the CIT(A) . 5. Learned counsel for the assessee-appellant to substantiate his plea, referred to para 3.4 of CIT(A)'s order which has been quoted ditto in para 6.3 by the Tribunal without any change in coma. Further illustrations were given by him as under:- Sr.No. ITAT Order CIT(A) order 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of its conclusions. c. Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well. d. Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasijudicial or even administrative power. e. Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. f. Reasons have virtually become as indispensable component of a decision making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. g. Reasons facilitate the process of judicial revi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andor (1987) 100 Harward Law Review 731-737). n. Since the requirement to record reasons emanates from the broad doctrine of fairness in decision making, the said requirement is now virtually a component of human rights and was considered part of Strasbourg Jurisprudence. See (1994) 19EHRR 553, at 562 para 29 and Anya vs. University of Oxford, 2001 EWCA Civ 405, wherein the Court referred to Article 6 of European Convention of Human Rights which requires, adequate and intelligent reasons must be given for judicial decisions . o. In all common law jurisdictions judgments play a vital role in setting up precedents for the future. Therefore, for development of law, requirement of giving reasons for the decision is of the essence and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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