Tribunal cannot merely record its conclusions without discussing factual matrix, evidence & material

Some general observations have been made by the Tribunal to hold that none of the documents or seized material pertain to the respondent-assessee. These findings, however, do not deal with the observations and findings of the Assessing Officer which are detailed, specific and to the contrary. The Assessing Officer, as noticed above, has referred to several factual aspects, documents, account statements, oral statements etc. in support of the contention of the Revenue.

The Tribunal is required to deal with the factual findings recorded by the Assessing Officer and, then after examining the document and evidence, give and record their factual conclusions. The factual conclusion should be based upon reasons and should be outcome of analysis and discussion. The Tribunal being the final fact finding authority cannot merely record its conclusions without discussing the factual matrix, evidence and material. Merely stating that the papers etc. do not pertain to the assessee and the contents of the document cannot be utilized, is the conclusion or the final inference which is not sufficient and adequate in the light of what has been recorded and held by the Assessing Officer in the block assessment order. In these circumstances, we have no other option but pass an order of remit and ask the Tribunal to discuss and examine the matter afresh and decide the factual matrix in detail. Of course the applicable provision of the Act have also to be examined.

 Ld. counsel for the respondent-assessee states that he had filed a detailed written synopsis and states that this was taken note of by the Tribunal. However, this does not mean that the order of the Tribunal meets the legal requirement. The impugned order cannot be upheld on this ground. Law requires and mandates that the Tribunal should explain and give reasons which are discernible and should be apparent from the order. We cannot assume, what had weighed and mattered with the tribunal in the absence of discussion.

HIGH COURT OF DELHI

Date of Decision: 30th April, 2012.

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