TMI Blog1999 (5) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 65,10,059 Set off against the carried forward losses as assessed and claimed. 65,10,059 ---------- Total income Nil ---------- 3. The said return was processed under s. 143(1)(a) by the AO, who made the adjustment of Rs. 2,52,763 on account of excess depreciation to the business income declared by the assessee which was set off against the carried forward losses of earlier years and finally assessed the total income at 'Nil' in the following manner: Rs. Returned total income 65,10,059 Adjustments under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly. The appeal before the CIT(A) against the levy of additional tax remained unsuccessful. Hence, this appeal before the Tribunal. 4. The learned counsel for the assessee Mr. Bagwat took us through the amended provisions of s. 143(1A) and submitted that two conditions are to be satisfied before levy of additional tax. Firstly, there must be increase in the income declared by the assessee on account of adjustment made under first proviso to s. 143(1)(a). Secondly, such increase in the income must result in the increase of total income. So, if the total income still remains the same despite the adjustment made by the AO, the additional tax cannot be levied in view of the clear and unambiguous language of s. 143(1A). 5. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o compute and declare his income under various heads under Chapter IV. The sum total of such income is not the total income. In computing the total income, the provisions of Chapter V, VI and VI-A are also to be taken into consideration. Carried forward loss of earlier years has to be set off under Chapter VI against the income declared by the assessee under Chapter IV. If there is still positive income, it has to be adjusted against deduction or allowance provided in Chapter VI-A. Therefore, as per the scheme of the Act, the total income is different from the income declared under various heads. It is because of such scheme of the Act, the legislature has used two different expressions in s. 143(1A) i.e. "Income" and "total income". Sub-cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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