2009 (11) TMI 54

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....k Sethi,Advocate for the appellant. 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 circumst....

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....ommenced on 1.12.1983, provision under Section 3 (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 ....

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....a, the ld. Counsel has contended that the loss upto 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. ....

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....ere was not net source of income, though it was explained 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 w....