9911796707
TMI Blog1999 (12) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the loss was determined at Rs. 44,77,989 and the necessary intimation was issued to the assessee requiring the assessee to pay additional tax of Rs. 3,17,000. The assessee filed an application under s. 154 against the adjustment made by the AO. The AO rejected the application of rectification. Aggrieved with the order of the AO, the assessee carried matter in appeal before the CIT(A). The CIT(A) held that since the income after adjustment made by the AO is a loss figure, no additional tax can be charged. 3. We have considered the rival contentions. The additional tax for both the assessment years namely asst. yrs. 1990-91 and 1991-92 has been levied by the AO under the amended provisions of s. 143(1A)(a)(ii). Sec. 143(1A)(a)(ii) has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional tax envisaged under the amended section is thus clearly of a character of penalty. Every modern legislation is actuated with some policy. There are legislations which are directed to cure some immediate mischief and provide for redress or compensation to the persons aggrieved. If a statute of this nature merely prohibits the Act by declaring the same as invalid and does not make offender liable to any penalty in favour of State, the legislation would normally be treated as remedial. On the other hand, penal statutes are those which provide for penalties for disobedience of law and provides for fine, forfeiture or other penalty against the offender. Penal statute thus enforces obedience to the command of the law by punishing the of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 99) 152 CTR (Gau) 245 : (1998) 232 ITR 502 (Gau) and Madras High Court in the case of Sukra Diamond Tools (P) Ltd. vs. Dy. CIT (1997) 137 CTR (Mad) 629 : (1998) 229 ITR 682 (Mad) are direct authorities in support of the view being taken by us here. However, it may be pointed out that a contrary view has been taken by the Hon'ble Madhya Pradesh High Court in the case of Sanctus Drugs Pharmaceuticals (P) Ltd. vs. Union of India Ors. (1997) 137 CTR (MP) 207 : (1997) 225 ITR 252 (MP). 5. It is a cardinal principle of Common Law jurisprudence that for the purpose of imposing penalty for the commission of wrongful act, it was the law operative on the date on which the wrongful act was committed which determined the penalty. This principle has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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