Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1626 - AT - Income TaxEnhancement of additional tax under section 143(1A) - depreciation disallowance - Held that:- In the present case, it is an accepted position that the assessee, a State Government undertaking, is running into huge losses from year to year and the partial disallowance of depreciation in one year thus does not result in any tax evasion because it will anyway be allowed in subsequent period, and, in this case, much before any tax benefit is availed form the same. The depreciation disallowance thus is only a timing difference, and, given the continuous losses being incurred by the assessee, it is wholly tax neutral. In any event, there is no material brought on record by the revenue authorities to show that the assessee attempted to evade taxes. In view of the above discussions, and respectfully following the law laid down in the case of CIT vs. Sati Oil Udyog Limited (2015 (3) TMI 854 - SUPREME COURT) we are of the considered view that enhancement of additional tax under section 143(1A) was not legally sustainable. As we hold so, we make it clear that in the present appeal we are only concerned about the additional tax enhanced in the impugned order, and out observations should be construed in this context only. The additional tax under section 143(1A), to the extent impugned in this appeal, stands deleted.- Decided in favour of assessee.
|