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TMI Blog2012 (9) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... question has been referred by the Tribunal for the opinion of this Court: Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding a part of the addition made to the assessee s income amounting to ₹ 7,00,000/-? 3 The brief facts relating to the case are as under: (a) The applicant-assessee had constructed industrial galas at Jyoti Wire House, Andheri, Mumbai. The applicant-assessee had sold six galas in the assessment year 1989-90 and seven galas in the assessment year 1990-91. (b) On 24.01.1990 the premises of the applicantassessee were searched by the respondent-revenue. At that time the applicant-assessee had disclosed that it had received on money of ₹ 348/-per square ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not believable. Consequently, the difference in prices is explainable only if the on money of ₹ 348 per square feet is added to the declared consideration for sale of galas in the assessment year 1989-90. (e) In second appeal, the Tribunal by its order dated 18.10.1993 partly allowed the appeal of the applicantassessee by giving the following finding: 19. We have considered the matter carefully. As regards the facts, there is no dispute that the assessee declared the receipt of on money of ₹ 348/- per sq. ft. in the assessment year 1990-91 i.e. the actual sale coming to at ₹ 1111/- per sq. ft. as against ₹ 763/- declared by them. There is also equally no dispute that this declaration of the receipt of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompletion of property transaction in the urban areas, more particularly mega and metropolitan cities. Even that being so it could at best burden the assessee only with an adhoc addition rather than an addition on the same scale as was confessed by them during the assessment year 1990-91. If it is the question of taking a judicial notice, we may not express much hesitation on saying that in case where search action is taken, the assessee fell scared and with a view to maintain harmonious celation with the department sometimes react over-enthusiastically, whether or not the Departmental officers make any attempt of oversmarting them. It is in this peculiar background of the case and taking into consideration that not an iota of material exist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived `on money' beyond reasonable doubt. The evidence available for the assessment year 1990-91 would certainly indicate the normal conduct of the applicant-assessee and has justifiably been applied to an earlier assessment year 1989-90, and (c) From a reading of the orders of the Assessing Officer and the Commissioner of Income-tax (Appeals), it would be clear that the addition made by them was correct in law. 6 We have considered the submissions. The respondent-Revenue has accepted the order of the Tribunal and has not preferred any application seeking to raise a question of law to the effect that the orders of the Assessing Officer and the Commissioner of Income-tax (Appeals) were correct in law and that the Tribunal ought n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,00,000/- has to be made on the basis of an estimate. The conclusion is bereft of any reasons whatsoever. Therefore, the conclusion arrived at by the Tribunal is clearly without supporting reasons. A sine qua non for a judicial order by the Tribunal is a reasoned order. A reasoned order would imply examination of the evidence placed before the authority and some nexus between the evidence and the conclusion reached. In this case, the Tribunal holds that there is no evidence and it seeks to add ₹ 7,00,000/- on an ad-hoc basis to the income declared by the applicant-assessee. However, suspicion by itself is not enough to reach the conclusion that `on money' was received by the applicant-assessee for the assessment year 1989-90. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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