2001 (9) TMI 51

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....he assessment year 1970-71, the Assessing Officer made a draft order, in which, he treated the loss incurred by the assessee as normal business loss. That draft assessment order was approved by the Inspecting Assistant Commissioner under section 144B of the Income-tax Act, 1961. Thereafter, the Assessing Officer changed his view of the nature of the loss incurred by the assessee in his transaction....

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....nt reference has been brought before us by the assessee. The Supreme Court in the case of Panchamahal Steel Ltd. v. U.A. Joshi, ITO [1997] 225 ITR 458 held as under: "A reading of section 144B shows that once a draft order is made and the matter is referred to the Inspecting Assistant Commissioner on receiving the objections of the assessee, the function of the Income-tax Officer practically....