TMI Blog2002 (2) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid reasons, we set aside the order of the Tribunal - - - - - Dated:- 7-2-2002 - Judge(s) : G. C. BHARUKA., K. SREEDHAR RAO. JUDGMENT The judgment of the court was delivered by G.C. BHARUKA J.-The assessee has preferred this appeal under section 260A of the Income-tax Act, 1961 (in short "the Act"). The substantial question of law involved in this appeal is: "Whether, in the facts and circumstances of the case, the Tribunal was right in holding that the assessee is liable to pay additional income-tax under section 143(1A)(a) of the Act?" The appellant is a company incorporated under the Companies Act, 1956. For the assessment year 1993-94, the appellant filed a return showing the total income (before deductions under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in any increase in the income. Subsequently, the appellant filed a revised return oh the basis of which a regular assessment under section 143(3) was completed. But, curiously, the Assessing Officer without giving effect to the appellate order dated February 26, 1994, directing the Assessing Officer to grant additional depreciation by way of adjustment under section 143(1)(a), in the demand notice issued under section 156 of the Act included the amount of additional income-tax as well being for Rs. 4,15,018. Against this demand notice, the appellant preferred an appeal before the Commissioner of Income-tax (Appeals), who, considering the facts noticed above and the provisions contained under section 143(1A), held that the inclusion of ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 percent of the tax that would have been charge able 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 subsection (1), reduce the amount of such refund by an amount equivalent to the additional income-tax calculated under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harging sections in tax laws, it can unhesitantly be said that the Tribunal has erred in reversing the order of the Commissioner of Income-tax (Appeals). So far as placing of reliance by the Tribunal on the judgment of the Supreme Court in the case of CIT (Asst.) v. J. K. Synthetics Ltd. [2001] 251 ITR 200 is concerned, the Tribunal has misdirected itself on this count as well. This is for the simple reason that in this judgment, mere perusal of facts of the case shows that it was a case where after adjustment, loss declared by the assessee had been reduced. On these facts the Supreme Court by taking note of the amended provisions held that the amended provisions, which were retrospective in nature, cover even cases where the loss is red ..... X X X X Extracts X X X X X X X X Extracts X X X X
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