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2017 (10) TMI 102 - HC - Income TaxAdditional tax to be charged under section 143(1A) - effect of reducing the loss declared by the assessee in the return of income - Held that:- Supreme Court in case of Commissioner of income Tax and others v. Sati Oil Udyog Ltd. and another [2015 (3) TMI 854 - SUPREME COURT] in which it was held and observed that section 143(1A) can be invoked where it is found on facts that the lesser amount stated in the return filed by the assessee was a result of an attempt to evade tax lawfully payable by the assessee and the burden of proving such fact is on the Revenue. The Tribunal observed that the assessee was a government undertaking and was since long running into huge losses year after year. The partial disallowance of depreciation in the year under consideration in any case would not result into any evasion of tax. In short, the assessee would earn no benefit out of the reduced depreciation which can always be claimed in later years. The assessee was a government company and was running into huge losses year after year consistently. The reduction of loss was only on account of disallowance of depreciation claimed by the assessee. The Tribunal also noted that if the disallowance was on the dispute of the machinery not having been installed during the year under consideration, such depreciation would always be available to the assessee in the later years. Since there was consistent loss offered by the assessee, this shifting of the depreciation to a later year would have no impact on its tax. - Decided in favour of assessee.
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