Sec. 37 of the Income Tax Act, 1961- Business Expenditure — In order to claim deduction the assessee has to prove that the payment was incurred wholly and exclusively for the purpose of business. AO and CIT(A) held that the transportation expenses have not been incurred for the purposes of business carried on by the assessee and are not allowable under section 37(1) of the Act. It was also held that transporters were carrying on business from Hospet and they were maintaining books of accounts at Hospet. Therefore, the assessee was not required to pay cash to the transporters as they were not carrying on the business in a remote area where there was no banking facility. Thus, CIT(A) enhanced the income of the assessment under appeal. However, Tribunal deleted all the additions made by the assessing authority as well as by the CIT(A), except confirming the addition of Rs. 31 Lakhs made by the assessing authority. High Court held that ”the Tribunal has not assigned any reasons on the issues raised before it and has not given any reasons in support of its conclusion. The order passed by the Tribunal is cryptic and suffers from the vice of non application of mind“. - CIT V/s RAJMAHAL SILKS - [2020] 275 TAXMAN 150 (KARN)