- (1.) This appeal under section 260-A of the Income Tax Act, 1961 (Act) challenges the order dated 21 September 2016 passed by the Income Tax Appellate Tribunal (Tribunal). The impugned order dated 21 September 2016 is in respect of assessment year 2011-12.
(2.) The Revenue has urged the following question of law for our consideration: "Whether in the facts and circumstances of the case the Tribunal was correct in law in cancelling the order of the Commissioner of Income Tax passed under section 263 of the Income Tax Act, 1961 without appreciating that the Assessing Officer has not brought anything on record to indicate that he had applied his mind while accepting the claim of operating loss of Rs. 8,79,80,896/-?"
(3.) The Respondent-assessee is engaged in the business of financing and trading in shares. The Respondent filed its return of income for the subject assessment year on 27 September 2011 declaring total loss at Rs. 11.29 crore. The Assessing Officer passed an order under section 143(3) of the Act making few disallowances/additions resulting in the assessment of Respondent's income at Rs. 35.50 crore.;