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TMI Blog2009 (11) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion of this court arising out of its order dated July 20, 1995 in I. T. A. No. 167 of 1990 relating to the assessment year 1985-86 : "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee had a right to exercise option to adopt its previous year from January 1, 1983 to June 30, 1984 under section 3(1)(e)(i) and was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lea of the assessee with the following observations : "In the present case, the only controversy to be determined is whether the assessee did commence business, with effect from December 1, 1983 ? If it was so, the assessee had a right to exercise option in respect of adoption of the previous year under section 3(1)(e)(i) of the Act. There was no other source of income prior to December 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed. It is also explained that the loss from January 1, 1983 to December 31, 1983 had been shown in the books of account at Rs. 1,63,080. Loss from March 1, 1983 to December 31, 1983 had been shown in the books of account at Rs. 8,66,671. Loss from January 1, 1984 to December 31, 1984, had been shown at Rs. 18,02,848. The plea of the learned counsel is that if the loss up to June 30, 1984, was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no new source of income, though it was explained mistakenly before the Assessing Officer, that from December 1, 1983, the assessee had started earning income from a new source. Since the facts are said to be otherwise, the asses- see's mistaken belief is said to be otherwise, the assessee's mistaken belief is said to be of no relevance and of no consequence. Looking to the entire facts, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be new busi- ness. 5. In view of reasons given by the Tribunal, it stands established that the business of the assessee commenced on December 1, 1983, and in such a situation the Tribunal was justified in holding that no prior permission was required under section 3(1)(e)(i). The question referred, thus, has to be answered against the Revenue and in favour of the assessee. 6. Reference is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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