TMI Blog2010 (11) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. This is an appeal under Section 260-A of the Income Tax Act (called the 'Act' for short) against the order of the Tribunal dated 30.9.1999, relating to the assessment year 1991-92. The assessee-respondent (hereinafter referred to as the 'assessee') filed the return disclosing the loss of Rs. 65,89,492/-. The return was processed under Section 143(1)(a) of the Act and, after adjustment, the loss was determined at Rs. 65,89,492/-. The assessing authority demanded additional tax at Rs. 45,434/-. The assessee moved an application under Section 154 of the Act disputing the demand of additional tax and sought rectification in the order passed under Section 143(1)(a) of the Act. The assessing authority, vide order dated 30.9.19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the loss is reduced after adjustment the additional tax can be imposed on the difference. Section 143(1)(a) of the Act reads thus : "143. (1)(a) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142,- (i) if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1), exceeds the total income declared in the return by any amount, the Assessing Officer shall,- (i) further increase the amount of tax payable under sub-section (1) by an additional income-tax calculated at the rate of twenty per cent of the tax payable on such excess amount and specify the additional income-tax in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1) ; (ii) where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additional income-tax calculated under sub-clause (I)." Sub-section (1A) was amended by the Finance Act, 1993, with effect from April 1, 1989, which was the date upon which sub-section (1A) had been introduced into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1), reduce the amount of such refund by an amount equivalent to the additional income-tax calculated under sub-clause (A) or sub-clause (B), as the case may be." The substituted sub-section (1A), therefore, made it clear that even where the loss declared by an assessee had been reduced by reason of adjustments made under sub-section (1)(a), the provisions of sub-section (1A) would apply. This being a retrospective amendment, it covers the controversy in this appeal and, therefore, the appeal would have to be decided in favour of the Revenue. In view of the above, we are of the view that the order of the Tribunal and the CIT Appeals are not sustainable and liable to be set aside. In the result the appeal is allowed and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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