2009 (11) TMI 54

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..... Mr. Rajiv Sharma, Advocate, for Mr. S.K. Mukhi, Advocate, for the respondent. ORDER 1. Income-Tax Appellate Tribunal, Chandigarh Bench, has referred following question of law for opinion of this Court arising out of its order dated 20.7.1995 in ITA No. 167 of 1990 relating to assessment year 1985-86:- "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in la .....

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..... (4) was not applicable, as the assessee had a right of choice under Section 3 (1) (e) (i). The Tribunal upheld the plea of the assessee with the following observations:- "In the present case, the only controversy to be determined is whether the assessee did commence business w.e.f. 1.12.1983? If it was so, the assessee had a right to exercise option in respect of adoption of the previous year u .....

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..... the period 31.12.1984, should have been allowed. It is also explained that the loss from 1.1.1983 to 31.12.1983 had been shown in the books of account at Rs. 1,63,080/-. Loss from 1.3.1983 to 31.12.1983 had been shown in the books of account at Rs. 8,66,671/-. Loss from 1.1.1984 to 31.12.1984 had been shown at Rs.18,02,848/-. The plea of the ld. Counsel is that if the loss upto 30.6.1984 was not a .....

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..... ained mistakenly before the A.O. That from 1.12.1983, the assessee had started earning income from a new source. Since the facts are said to be otherwise, the assessee's mistaken belief is said to be otherwise, the assessee's mistaken belief is said to be of no relevant and of no consequence. Looking to the entire facts, we are of the view that when the business had commenced w.e.f. 1.12.1983, the .....

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..... the business of the assessee commenced on 1.12.1983 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 disposed of. (ADARSH KUMAR GOEL) JUDGE  (GURDEV SINGH ) prem JUDGE November 13, 2009
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