TMI Blog2019 (10) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... uiry by the AO during the assessment proceedings leading to the assessment order dated 28 March 2014. Thus, it is amply clear that the Assessing Officer has applied his mind while accepting the claim of the Respondent of operating loss making the proceedings under section 263 of the Act bad in law. In any event, the view taken on fact by the Assessing Officer is a possible view and the same is not shown to be bad. - Decided against revenue. - INCOME TAX APPEAL NO. 1010 OF 2017 - - - Dated:- 15-10-2019 - M.S. SANKLECHA AND NITIN JAMDAR, JJ. Tejveer Singh for the Appellant. Satish Mody with Aasifa Khan for the Respondent. P.C. : This appeal under section 260-A of the Income Tax Act, 1961 (Act) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -notice is that the operating loss of ₹ 8.79 crore was not examined into by the Assessing Officer inasmuch as he neither called for any details nor any explanation to satisfy himself that the loss of ₹ 8.79 crore claimed by the assessee is correct. This on the grounds as reproduced in the show cause notice which read thus: This figure of ₹ 8,79,80,162/- shown under other operating losses seems to be a trading loss incurred by the company out of its business of financial and capital market activities as reported by the Tax Auditors in Col. No.8 of form 3 CD, being its main business activity. However, on perusal of the assessment records it is noticed that neither any details nor any explanation to arrive at the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent preferred an appeal to the Tribunal. The impugned order of the Tribunal notes that from the record available it is evident that during the course of assessment proceedings, exhaustive details and documentary evidence were called for by the Assessing Officer from the Respondent to justify the operating loss of ₹ 8.79 crore. In particular, the impugned order refers to the replies dated 11 November 2013, 3 December 2013 and 24 January 2014 wherein complete details in support of its claim of operating loss of ₹ 8.79 crore were made available by the Respondent to the Assessing Officer. In fact, the manner in which the operating loss of ₹ 8.79 crore was arrived at was submitted in a tabulated form along with item-wise det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies claimed by the assessee. Moreover the before passing the assessment order, sale, purchase and closing stocks were also examined by the Assessing Officer. Thus, the basis to invoke section 263 of the Act factually did not exist as there was due enquiry by the Assessing Officer during the assessment proceedings leading to the assessment order dated 28 March 2014. Thus, it is amply clear that the Assessing Officer has applied his mind while accepting the claim of the Respondent of operating loss of ₹ 8.79 crore making the proceedings under section 263 of the Act bad in law. In any event, the view taken on fact by the Assessing Officer is a possible view and the same is not shown to be bad. 8. In the above view, the question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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