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TMI Blog2016 (10) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... or The Respondent : Shri Maurya. M.N., CIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax 10, Chennai, dated 17.03.2015, and pertains to assessment year 2009-10. 2. Shri Anil Nair, the Ld. representative for the assessee, submitted that the assessee claimed depreciation in respect of the vehicle which is mounted with film equipments and let out on higher rate of depreciation at 40%. Since the film equipments were installed on the vehicle, which was let out on hire, according to the Ld. representative, the film equipments as well as vehicle is entitled for higher depreciation. However, the CIT found that the higher rate of depreciation is applicable only in respect of the vehicle which was running on hire , therefore, the film equipments which were installed on the vehicle is not entitled for higher depreciation. Referring to the assessment order, the Ld. representative submitted that even though the Assessing Officer disallowed a sum of ₹ 2,78,641/- towards depreciation with regard to variation in the opening Written Down Value on plant and machinery, he allowed the enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation. 4. Moreover, the Assessing Officer has not discussed anything about depreciation for the vehicle on which generator was mounted. The Assessing Officer refers only to variation in the Written Down Value on the plant and machinery. Since the Assessing Officer has not discussed anything with regard to depreciation of vehicle in the impugned assessment order, according to the Ld. D.R., it cannot be said that the Assessing Officer has taken one of the possible view. In fact, the Assessing Officer has not taken any view at all. Therefore, there is no application of mind to the facts of the case and there is no discussion in the assessment order. Therefore, according to the Ld. D.R., at any stretch of imagination it cannot be said that the Assessing Officer has taken one of the possible view as held by the Apex Court in Malabar Industrial Company Ltd. (supra). Referring to the orders of the CIT(Appeals) for assessment year 1996-97 and the Assessing Officer for assessment year 1990- 91, the Ld. D.R. submitted that each assessment year is separate and distinct. The Assessing Officer found that there was a variance in the plant and machinery. Therefore, it is not known whether th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reached in the assessment order. The proceeding before the Assessing Officer being judicial proceeding, there cannot be any presumption that the Assessing Officer has applied his mind to the material available on record. Furthermore, the order of the Assessing Officer is subjected to revision/appeal before the higher forums. Therefore, in order to appreciate the order of the Assessing Officer by the revisional/appellate authorities, the Assessing Officer has to record his own reasons for the conclusion reached therein. Otherwise, the very object of providing revisional / appellate remedies under the scheme of the Income-tax Act would be defeated. Moreover, the reasons recorded by the Assessing Officer would eliminate arbitrariness in the decision making process. In the latest judgment of Punjab Haryana High Court in CIT v. Sunil Kumar Goel [2005] 274 ITR 53, the High Court, after considering the judgment of the Constitutional Bench of the Apex Court in S.N.Mukherjee v. Union of India, AIR 1990 SC 1984, has observed as follows: In S.N.Mukherjee v. Union of India, AIR 1990 SC 1984, a Constitution Bench of the Supreme Court discussed the development of law on this subject in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, revision or judicial review. In our opinion, therefore, the requirement that reasons be recorded should govern the decisions of an administrative authority exercising quasi-judicial functions irrespective of the fact whether the decision is subject to appeal, revision or judicial review. It may, however, be added that it is not required that the reasons should be as elaborate as in the decision of a court of law. The extent and nature of the reasons would depend on particular facts and circumstances. What is necessary is that the reasons are clear and explicit so as to indicate that the authority has given due consideration to the points in controversy. The need for recording of reasons is greater in a case where the order is passed at the original stage. The appellate or revisional authority, if it affirms such an order, need not give separate reasons if the appellate or revisional authority agrees with the reasons contained in the order under challenge. In Testeels Ltd. v. N. M. Desai [1970] 37 FJR 7; AIR 1970 Guj 1, a Full Bench of the Gujarat High Court has made an extremely lucid enunciation of law on the subject and we can do no better than to extract some of the obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer and the Commissioner of Income-tax (Appeals). It should have directed its attention to the language of sections 271D and 271E of the Act in conjunction with other provisions of the same family and then decided by a reasoned order whether the respondent had been able to make out a case for deleting the penalty. The order passed by the Tribunal should have clearly reflected the application of mind by the learned members. In view of the above, this Tribunal is of the considered opinion that the Assessing Officer is expected to record his own reasons for the conclusion reached, in the assessment order. Unfortunately, the Assessing Officer has not discussed anything in the assessment order and the facts are not coming out in the assessment order. The Assessing Officer has not applied his mind to the material available on record, therefore, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly exercised his revisional jurisdiction under Section 263 of the Act. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 8. In the result, the appeal filed by the assessee is dismissed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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