9911796707
TMI Blog1996 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... undara, an assessee on the files of the Deputy Commissioner of Income-tax (Assessment), Special Range, Trivandrum. For the assessment years 1989-90 and 1990-91, the petitioner filed returns in respect of its income under the Income-tax Act, 1961, declaring total losses of Rs. 11,92,81,260 and Rs. 11,39,10,709, respectively, as worked out in the statement marked as exhibit P-1 in both the cases. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting to Rs. 2,33,509. Similarly, for the assessment year 1990-91, the assessing authority in exhibit P-2 intimation also levied an additional tax amounting to Rs. 1,26,428 under section 143(1A) of the Act. Aggrieved by the order levying additional tax for the assessment years 1989-90 and 1990-91, the petitioner preferred revision petitions before the Commissioner under section 264 of the Act. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r adjustments. The petitioner has, by way of amendment, sought additional relief for quashing section 143(1A) and in particular sub-clause (B) of clause (a) to the extent it levies additional income-tax on the loss declared by the assessee and also for a declaration that section 143(1A)(a)(B) is ultra vires the provisions of articles 14, 19 and 265 of the Constitution of India. According to the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India [1994] 210 ITR 121. This court in the said decision has held that the provision for levy of additional tax even where the net result is a loss after carrying out adjustments is intended to prevent evasion of tax and that the amendment of section 143(1A) by the Finance Act, 1993, levying additional tax with retrospective effect from April 1, 1989, does not violate articles 14 and 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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