Disposing of appeal by merely holding that AO's order was self-speaking which required no interference was unjustified

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Disposing of appeal by merely holding that AO's order was self-speaking which required no interference was unjustified
Assessee filed an appeal to CIT(Appeals) against order of scrutiny assessment done by Assessing Officer. CIT(Appeals) disposed of appeal holding that Assessing Officer's order was a self-speaking order and did not require interference.
The Madras High court held that the CIT(Appeals) is a fact finding authority and, therefore, has to consider the order of assessment on the grounds raised in the appeal and thereafter, pass a speaking order on merits and in accordance with law by giving his own reasons and findings as to whether the order of assessment could be sustained or not.
In other words, the order should explicitly exhibit application of mind to the facts and circumstances and the objections raised in the grounds of appeal, also by expressing the reasons and findings in support of the conclusion.
Thus, impugned order was to be set aside and matter was to be remitted back to the CIT(Appeals) for passing fresh order, a speaking order with reasons and findings.

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