EXPRESS NEWSPAPERS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) FOR the assessment year 1970-71, the Assessing Officer made a draft order, in which, he treated the loss incurred by the asses-see as normal business loss. That draft assessment order was approved by the Inspecting Assistant Commissioner under Section 144B of the Income-tax Act, 1961. Thereafter, the Assessing Officer changed his view of the nature of the loss incurred by the assessee in his transaction relating to shares and considered those losses to be speculative loss and capital loss. The modification so made by the Assessing Officer was not pursuant to any direction given by the Inspecting Assistant Commissioner. The approval given by the Inspecting Assistant Commissioner was for the treatment of the loss as business loss.

(2.) THE assessee having taken the matter in appeal, the appellate authority agreed with the assessee that the Assessing Officer could not have meddled with the draft assessment order after it received approval of the Inspecting Assistant Commissioner. He directed the Income-tax Officer to treat the entire loss as business loss. THE matter was then taken on appeal to the Tribunal by the Revenue. THE Tribunal having set aside the order of the Commissioner, the present reference has been brought before us by the assessee.