N.K.Sud, J.

1. The assessee has filed this appeal under Section 260A of the IT Act, 1961 (for short the Act) against the order of the Tribunal, Delhi Bench, Delhi, dt. 20th July, 2001, whereby its appeal against the order of the CIT, Rohtak, dt. 31st Oct., 2000, has been dismissed.

2. The assessee-firm is engaged in the business of trading of Saria on wholesale basis. For the asst. yr. 1998-99, the assessee filed its return on 29th Oct., 1998, declaring a loss of Rs. 1,97,707. This return was initially processed under Section 143(1)(a) of the Act on 16th March, 2000, and, thereafter, notices under Sections 143(2) and 142(1) of the Act were issued for making regular assessment. Ultimately, assessment under Section 143(3) of the Act was framed by the AO on 31st March, 2000, who determined the total loss at Rs. 1,27,011.

3. Subsequently, the assessee received a notice dt. 12th Oct., 2000, under Section 263(1) of the Act to show cause as to why remedial steps may not be taken as the assessment order, dt. 31st March, 2000, in the opinion of the CIT, was erroneous and prejudicial to the interest of the Revenue This opinion had been formed by the CIT on the ground that the AO, whi