2002 (10) TMI 65

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....t filed a return declaring a loss of Rs. 1,13,313 pursuant to a notice under section 148 of the Act. The assessing authority processed the return under section 143(1)(a) of the Act and the net loss was determined at Rs. 93,000. The excess tax paid was either adjusted/ refunded. Subsequently, the assessing authority took up the matter for scrutiny and an assessment was completed under section 143(3) of the Act by order dated January 13, 1995 (annexure A) determining the total income at Rs. 41,18,770. The appellant took up the matter in appeal before the Commissioner of Income-tax (Appeals), who by his order dated November 6, 1995 (annexure B) allowed the appeal in part. In respect of the loss from toddy business the Commissioner of Income-ta....

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....he name of one of the partners and therefore the Benami Transactions (Prohibition) Act, 1988, applies. The appellate authority also noted that the firm was granted registration as per the appellate order and therefore, notwithstanding the provisions of the Benami Transactions (Prohibition) Act, the loss incurred in the toddy section has to be allowed. The Income-tax Appellate Tribunal in I.T.A. No. 159/Coch. of 1996 set aside the order of the Commissioner of Income-tax (Appeals) directing registration of the firm and held that the appellant is not entitled to the registration of the firm. The Tribunal thereafter noted that the assessing authority has discussed elaborately why the loss of Rs. 12,90,997 from the toddy business from 15 shops c....

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....larly, for the assessment year 1990-91, the assessee claimed a loss of Rs. 16,30,213 in 30 toddy shops, that the Commissioner of Income-tax (Appeals) sustained the disallowance of Rs. 4.5 lakhs which was confirmed by the Tribunal. The authorised representative of the appellant on the basis of these materials contended that the loss of Rs. 12,70,920 claimed by the assessee for the assessment year 1991-92 is neither excessive nor unreasonable and so there was no case for making any disallowance. The Tribunal based on the assessment for the year 1990-91, noted that the loss per shop sustained was Rs. 39,300, but for the current year the assessee's claim works out to a loss of Rs. 86,000 per toddy shop. With reference to the order of the Tribun....