COMMISSIONER OF INCOME TAX Vs. EXPRESS NEWSPAPERS LIMITED

JUDGEMENT

(1.) THE question referred to us at the instance of the Revenue is:

(2.) A draft assessment was made in respect of the assessee's income for this year in which the assessing Officer proposed the disallowance of the claim of the assessee for deduction of loss on sale of investment amounting to Rs.14,27,500/ -. The Inspecting Assistant Commissioner, to whom the draft assessment had been forwarded as required by Section 144B of the Income -tax Act, gave a direction to the assessing Officer under Section 144B(4) of the Act to allow the deduction as a short term capital loss. The assessment was, thereafter, made on 13.8.1984 allowing the deduction.

(3.) THE Tribunal, to whom the assessee appealed, set aside the Commissioner's order on the ground that Section 144B(5) of the Act imposes limitation on the power of the Commissioner of Income -tax (Appeals) to enhance the assessment.