Reassessment proceedings were challenged before the High Court. High Court held that the Assessing Officer was not entitled to adjust loss of brought forward from books of account of transferor-company. However the Single Judge held that re-assessment was without jurisdiction but rendered direction to Assessing Officer to look into other grounds. On appeal the division bench held that  when the  since Single Judge came to conclusion that re-assessment proceedings were without jurisdiction, Single Judge was barred to issue any further directions to Assessing Officer to look into other grounds.  (AY. 2010-11)