TMI Blog2001 (2) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... India Versus Indo-gulf Fertilizers And Chemicals Corporation Limited Union of India Versus Modi Cement Judge(s) : S. P. BHARUCHA., N. SANTOSH HEGDE. and Y. K. SABHARWAL. ORDER C. A. No. 1636 of 1994 : This appeal arises from the judgment of a learned single judge of the Delhi High Court (see [1993] 200 ITR 584) on a writ petition. The writ petition was made absolute and the Revenue is in appeal. The writ petitioner assessee had returned a net loss. After adjustments had been made by the taxing authorities under the provision of section 143(l)(a), the amount of loss stood reduced. The taxing authorities under the provisions of section 143(1A) sought to levy additional tax upon the assessee in this behalf and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facie inadmissible, shall be disallowed : Provided further that where adjustments are made under the first proviso, an intimation shall be sent to the assessee, notwithstanding that no tax or interest is found due from him after making the said adjustments : Provided also, that an intimation for any tax or interest due under this clause shall not be sent after the expiry of two years from the end of the assessment year in which the income was first assessable." Sub-section (1A), as it originally read, was thus : "(1A)(a) Where, in the case of any person, the total income, as a result of the adjustments made under the first proviso to clause (a) of sub-section (1), exceeds the total income declared in the return by any amount, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income-tax in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1) ; (B) in a case where the loss so declared is reduced under sub-clause (ii) of this clause or the aforesaid adjustments have the effect of converting that loss into income, calculate a sum (hereinafter referred to as additional income-tax) equal to twenty per cent. of the tax that would have been chargeable on the amount of the adjustments as if it had been the total income of such person and specify the additional income-tax so calculated in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1) ; (C) where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incorrect. The question here is only whether a loss which is reduced by reason of the application of the provisions of sub-section (1)(a) falls within the ambit of sub-section (lA). We should add that we have reservations about the correctness of the judgment in Hindustan Electro Graphite Ltd.'s case [2000] 243 ITR 48 (SC) principally because the assessee in that case had not challenged the provisions of sub-section (1A). The appeal is allowed. The order under appeal is set aside. There shall be no order as to costs. C. A. No. 3464 of 1992 : Learned counsel for the assessee states that the adjustment which was made under section 143(1)(a), on the basis of which the provisions of subsection (1A) were invoked, has since been se ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
