CIT Vs. HINDUSTAN TIN WORKS LTD.

JUDGEMENT

(1.) THIS is an appeal preferred by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to in short as the Act) against the judgment dated 7 -12 -2007 passed by the Income Tax Appellate Tribunal (hereinafter referred to in short as the Tribunal) in ITA No. 1101/Del/2005 pertaining to assessment year 2001 -02.

(2.) AT this stage, we may also point out that in the impugned judgment of the Tribunal there is a reference to a submission made on behalf of the revenue to the effect that the loss of Rs. 19,67,450 claimed by the assessee could not have been allowed in view of the provisions of Section 71(3) of the Act which prohibits the set off of loss against income of the assessee under a head other than capital gains. We may point out that the Tribunal has noted that the assessing officer has himself treated the loss as business loss and, therefore, there was no question of applying the provisions of Section 71(3) of the Act. Perhaps advisedly the revenue has neither raised it as a ground before us, nor has the same been urged by the learned Counsel for the revenue Mr. R.D. Jolly before us.

(3.) IN order to dispose of the appeal and the issues raised therein, the following facts require to the noted.