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TMI Blog2021 (7) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... siness of Ferrous and Non-Ferrous Scrap Material. The return of income for the A.Y. 2012-13 was filed on 27.09.2012 declaring income of Rs. 40,37,896/-. Against the said return of income, the assessment was completed by the DCIT, Circle - 8, Pune (hereinafter referred as "the Assessing Officer") vide order dated 19.01.2015 at a total income of Rs. 2,80,30,920/- after making addition of Rs. 16,40,000/- u/s 68 of the Income Tax Act (hereinafter referred as "the Act"). 3. The brief factual matrix leading to the above addition is as under : During the course of assessment proceedings, the Assessing Officer found that the assessee had received unsecured loans from the following persons as set out by the Assessing Officer vide Para 9 of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the I.T. Act. 4. Being aggrieved by the above addition, an appeal was filed before the ld.CIT(A) who vide impugned order had deleted the addition of Rs. 12 lakhs received from Smt. Deepibai Amrutlal Choudhary by holding that the amount represents opening balance. In respect of other credits received, he confirmed the addition by citing that the creditworthiness of the creditors was not proved. 5. On the other hand, the ld.CIT D.R. placed reliance on the order of ld.CIT(A). 6. We heard the rival submissions and perused the material on record. The issue in the present appeal refers to the unexplained cash credits u/s 68 of the I.T Act. The onus lies upon the assessee to prove to the satisfaction of the Assessing Officer as to identity, cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be in conformity with the principles of natural justice. Recording of reasons for the conclusions reached by an authority is a part and parcel of the principles of natural justice. 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 authority must record reasons in support of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Defence of Judicial Candor (1987) 100 Harward Law Review ..... X X X X Extracts X X X X X X X X Extracts X X X X
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