Sec 14A restrict the allowance of expenditure related to exempted income subject to the date of introduction of rule 8D

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
We have heard both the parties and gone through the facts of the case as also the aforesaid decision relied upon by the ld. DR. A mere glance at the impugned order reveals that the order passed by the ld. CIT (A) is cryptic and grossly violative of one of the facets of the rules of natural justice, namely, that every judicial/quasi- judicial body/authority must pass reasoned order, which should reflect application of mind by the concerned authority to the issues/points raised before it . The application of mind to the material facts and the arguments should manifest itself in the order. Sect ion 250(6) of the Act mandates that the order of the CIT (A) while disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision. The requirement of recording of reasons and communication thereof by the quasi- judicial authorities has been read as an integral part of the concept of fair procedure and is an important safeguard to ensure observance of the rule of law. It introduces clarity, checks the introduction of extraneous or irrelevant considerations and minimizes arbitrariness in the decision-making process. Hon’ble jurisdictional High Court in their decision in Vodafone Essar Ltd. Vs. DRP, 196 Taxman423(Delhi) held that when a quasi judicial authority deals with alis, it is obligatory on its part to ascribe cogent and germane reasons as the same is the heart and soul of the matter and further, the same also facilitates appreciation when the order is called in question before the superior forum. We may point out that a ‘decision’ does not merely mean the ‘conclusion’. I t embraces within its fold the reasons forming basis for the conclusion.

Citation :
JCIT(OSD) , Circle 9(1), Room no. 163,CR Building, IP Estate,New Delhi V/s. M/s Surya Food & Agro (P) Ltd. ,E-67,LGF,Greater Kailash-I I I ,Masjid Moth,New Delhi