2012 (3) TMI 683

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....missioner of Income Tax (Appeals) [CIT(A)] erred in upholding the order of ld. Assessing Officer (A/O) disallowing the loss of ₹ 2557790/- in saree trading business. ALTERNATIVE BUT WITHOUT PREJUDICE TO GROUND NO.1 Alt.1(a) For that on the facts and in the circumstances of the case, the ld. CIT(A) erred in confirming non set off of current year's business loss remaining even after the disallowance of aforesaid loss of ₹ 2557790/-. Alt.1(b) For that on the facts and in the circumstances of the case, the ld. CIT(A) erred in confirming non set off of unabsorbed depreciation brought forward from earlier years while computing total income." 3. The brief facts of this issue are that the Assessing Officer while doing the scru....

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....ailable with them and all the payments have been made by cheque. The assessee has explained that they had entered into a contract with the seller to buy sarees at a fixed rate and had to keep on purchasing from him despite the fact that all the time he was selling the sarees at a loss. In my opinion this explanation of the assessee does not seem convincing. First of all it is seen that in the saree trading business contract is never made to buy certain sarees at fixed rate for such a long period spreading almost two years. In any type of business whenever there is contract for such a long period it is always in writing and there is always some guarantee or advance payment linked to such contract. But in the case of the assessee there was ne....