TMI Blog1993 (1) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... justice, as null and void and has sought a writ of certiorari quashing the aforesaid demand. The RSEB submitted its return of income on December 30, 1991, for the financial year 1990-91 relevant to the assessment year 1991-92. In the said return, it has shown a loss of Rs. 4,27,39,32,972. For the aforesaid assessment year, the RSEB suffered a loss as per revenue account amounting to Rs. 1,68,39,37,000. It also claimed depreciation of Rs. 3,33,77,70,317 and, after disallowing inadmissible expenditure, the aforesaid total loss was shown in the return filed as aforesaid. An intimation under section 143(1A)(a) of the Income-tax Act was issued to the RSEB by the Deputy Commissioner of Income-tax (Assessment), Special Range-II, Jaipur, dated Fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee : Provided that in computing the tax or interest payable by, or refundable to, the assessee, the following adjustments shall be made in the income or loss declared in the return, namely:- (i) any arithmetical errors in the return, accounts or documents accompanying it shall be rectified ; (ii) any loss carried forward, deduction, allowance or relief, which, on the basis of the information available in such return, accounts or documents, is prima facie admissible but which is not claimed in the return, shall be allowed ; (iii) any loss carried forward, deduction, allowance or relief claimed in the return, which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was passed. (c) Where the assessee is a partner of a firm or a member of an association of persons or body of individuals and as a result of the adjustments made under the first proviso to clause (a) of sub-Section (1) in the income or loss declared in the return made by the firm, association or body, as the case may be, or as a result of an order made under subsection (3) of this section or section 144 or section 147 or section 154 or section 155 or sub-section (1) or sub-section (2) or sub-section (3) or subsection (5) of section 185 or sub-section (1) or sub-section (2) of section 186 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, or any order of settlement made under sub-section (4) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional income-tax calculated under sub-clause (i). (b) Where as a result of an order under section 154 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, the amount on which additional income-tax is payable under clause (a) has been increased or reduced, as the case may be, the additional incometax shall be increased or reduced accordingly, and, (i) in a case where the additional income-tax is increased, the Assessing Officer shall serve on the assessee a notice of demand under section 156 ; (ii) in a case where the additional income-tax is reduced, the excess amount paid, if any, shall be refunded. Explanation. - For the purposes of this sub-section, 'tax payable on such excess amount' means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then it is not a case where it can be said that, as a result of adjustments, the total income has at all exceeded the income declared in the return and, therefore, no additional tax could have been levied and it is without authority of law and without jurisdiction. In other words, the contention of Mr. Ranka, learned counsel for the RSEB, is that in case, as a result of adjustments, there is reduction of loss, the aforesaid provision will not apply and no additional tax can be charged because, in that case, there will be no exceeding of the total income than the one declared in the return. In support of his contention, Mr. Ranka learned counsel for the RSEB, has relied on the case of Modi Cement Ltd. v. Union of India [1992] 193 ITR 91 (De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue, contended that the aforesaid view of the Delhi High Court is not correct and the interpretation placed by that court on the aforesaid section is also not correct. It was contended by Mr. Bapna, learned counsel for the Revenue, that additional tax can be charged even in loss cases and learned counsel tried to draw an analogy from the provisions of section 271(1)(c) of the Income-tax Act, wherein penalty can be levied for concealment of income even in a loss case. According to learned counsel for the Revenue, the additional tax has been charged legally. In my opinion, it is not correct to draw any analogy from the aforesaid provision of section 271(1)(c) of the Income-tax Act in so far as the provisions of section 143(1A)(a) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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