TMI BlogAdditional tax under the provisions of Sec.143(1A)(i).X X X X Extracts X X X X X X X X Extracts X X X X ..... ble limit so that no tax is found due on the income determined after making the said adjustments additional tax can be levied under the provisions of clause (i) of the explanation in sub-section (1A) of sec. 143 in respect of the adjustments made and whether an intimation can be sent u/s.143(1)(a))i) for such demand on account of additional income- tax. 2. In this connection, the following provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded so that charge of additional income-tax is also included in the charge of income-tax. ii. First proviso to section 143 (1)(a) enables the department to make certain adjustments in the returned income or loss while computing the tax or interest payable by the assessee. iii. The 2nd proviso to section 143 (1)(a) as introduced by Direct Tax Laws(2nd amendment) Act, 1989, enables the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CESS AMOUNT means where the amount of adjustments made exceed the total income, the tax that would have been chargeable had the amount of adjustments been the total income. Thus the provisions of the said clause (i) provides for levy of additional income-tax in a situation where loss declared in a return is reduced or converted into profit as a result of an adjustment made to the returned loss. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chargeable will be nil. Even in such cases it will not be possible to issue an intimation to the assessee under the 2nd proviso to section 143(1)(a) inserted by the Direct Tax Laws (2nd Amendment) Act, 1989. 4. The above instructions may kindly be brought to the notice of all officers working in your region. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Manageme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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