The High Court allowed the Department’s appeal against the order of the Tribunal setting aside the revision proceedings under section 263 of the Act  holding that the Commissioner was justified in setting aside the assessment order under section 263, on the grounds that the record, prima facie, suggested that no business was undertaken by the assessee during the year though it had claimed business expenses with a view to carrying forward losses, that the records clearly indicated that the assessee had not charged any fees for technical or management services said to have been rendered  during the year, that without a thorough inquiry, the Assessing Officer was not justified in allowing the assessee to carry forward losses, that this was not a case of some plausible view taken by the Assessing Officer but a case where his decision was a result of non-application of mind to the materials on record and that it was only in pursuance of inquiry that the Commissioner had recorded a categorical finding that the assessee had not claimed payment of any fees from Paradeep Phosphates Ltd  in respect of any technical or management services said to have been rendered by it. SLP of assessee was dismissed. (AY. 2009-10)