Appellate Tribunal : A.Y. 2001-02 : Order passed beyond four months after hearing and without giving reasons : Quashed as not valid.

[Shivsagar Veg Restaurant, 176 Taxman 260 (Bom.)]

For the A.Y. 2001-02 the Tribunal had heard the assessee’s appeal on 2-6-2005, but the order was passed on 21-10-2005 i.e., almost after a delay of more than four months dismissing the appeal without recording reasons, discussing propositions of law and case law relied upon by the assessee.

On appeal filed by the assessee the Bombay High Court set aside the order of the Tribunal for fresh disposal and held as under :

“(i) The Appellate Tribunal being the final author-ity of facts, it is incumbent upon it to appreciate the evidence, consider the reasons of the authorities below and assign its own reasons as to why it disagrees with the reasons and findings of the authorities below. Merely because the Tribunal happened to be an appellate authority, it does not get the right to brush aside reasons or findings recorded by the first authority or the lower appellate authority. It has to examine validity of the reasons given and findings recorded. Mere recording that the conclusions arrived at did not require discussion of the case law and other propositions of law is no consideration. Merely by saying that the findings of the Commissioner (Appeals) are just, fair and in accordance with the law can hardly tantamount to giving reasons. The absence of reasons had rendered the impugned order of the Tribunal unsustainable.