INCOME TAX ACT, 1961

Section 250(6)

Appeal [CIT(A)] - Mandate of speaking order - Appeal dismissed without recording reasons -

Two issues arose in the assessment proceedings, viz., whether the income from the hospital income was to be assessed as income from other sources or as House property income. The second issue arose as to whether the loss under the head 'Income from other sources' can be set off against the salary income. The AO after hearing the assessee rejected both these claims of the assessee. CIT(A) had dismissed the appeal of the assessee. Held: Sub-section (6) of section 250 mandates the CIT(A) to state point in dispute, and thereafter record reasons in support of his conclusion. A perusal of the finding in assessee's case would indicate that it was not in consonance with mandate given in the Act. The CIT(A) had not made any analysis of submissions filed by the assessee as well as point raised by him during the assessment proceedings. Therefore, the impugned order was not sustainable; it deserves to be set aside. If one examines order of the CIT(A) then it would reveal that this order was not in coherence with the requirement contemplated in section 250(6), and therefore, the order was set aside and issues were remitted the file of the CIT(A) for adjudication on merit.

Followed:Roadmaster Inds. Of India Pvt. Ltd. v. IAC of IT, (2008) 303 ITR 138 (P&H) : 2008 TaxPub(DT) 0237 (P&H-HC)

REFERRED :

FAVOUR : In assessee's favour/Matter remanded.

A.Y. :

INCOME TAX ACT, 1961

Section 271(1)(c)

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