9911796707
TMI Blog2009 (11) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... ious year without permission could not be exercised. This judgment is clearly distinguishable as in the present case, the business of the assessee has been held to be new business. - In view of reasons given by the Tribunal, it stands established that 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 - 26 of 1996 (O&M) - - - Dated:- 13-11-2009 - CORAM:- HON 'BLE MR. JUST ICE A DAR SH KUMAR GOEL HON 'BLE MR. JUST ICE GURDEV SINGH Present: Mr. Vivek Sethi,Advocate for the appellant. Mr. Raji ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was so, the assessee had a right to exercise option in respect of adoption of the previous year u/s 3 (1) (3) (i) of the Act. There was no other source of income prior to 1.12.1983. There was no question of any new source of income in the hands of the assessee. The ld. Counsel has explained that it was only by mistake that the assessee while explaining justification for the change in the previous year, took the plea that it was a new source of income. But that plea should not damage the assessee's case, on the basis of actual facts. This was also pointed out by the ld. Counsel that even if the previous year adopted by the assessee was not acceptable and the accounting period was treated as having ended on 31.12.1983 to 31.12.1984, loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wise, 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 assessee-company had a right to exercise the option to adopt a previous year u/s 3 (1) (e) (i) of the Act. We, therefore, accept the assessee's plea that the claim of loss shown upto 30.6.1984, has to be allowed, treating the 'previous year' as ending on 30.67.1984." 3. We have heard learned counsel for the parties and perused the record. 4. Learned counsel for the appellant has placed reliance on Commissioner of Income-tax vs. Ravinder Kumar (1989) 180 ITR 203 (P H) wherein business not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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