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2011 (5) TMI 495 - HC - Income TaxRevision u/s 263 - whether the assessee is justified in claiming set off of brought forward losses of previous years against this dividend income giving it the character of business income even though assessed as income from other sources - assessee is a non-banking finance company engaged in the business of investment in shares, securities, other debt instruments and financing loans and providing guarantees - CIT observed that the balance sheet of the assessee company shows that all the investments in shares of bodies corporate was grouped as long-term investment and no part of investment had been considered stock-in-trade and was not grouped as part of current assets - The assessment order is totally silent and there is no discussion as to how this dividend income was to be given the character of business income for the purpose of set off under Section 72 of the Act - This rendered order passed by the AO erroneous and prejudicial to the interest of Revenue to that extent - Decided against the assessee As order of the CIT dated 07.03.2008 passed under Section 263 of the Act is restored, the impugned order dated 22.06.2009 and order dated 02.02.2010 passed by the CIT (A) and the AO are set aside and the matter is restored to the file of the CIT (A) to decide the appeal of the assessee on merits insofar as challenge of the assessee to orders dated 30.07.2008 passed by the AO under Section 143(3)/263 of the Act is concerned - Appeal is disposed of
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