TaxTMI 
TaxTMI 
1999 (5) TMI 90
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....p; Rs. Total business income after adjustment 65,10,059 Set off against the carried forward losses as assessed and claimed. 65,10,059 &nbs....
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....sp; 2,52,763 --------- Adjusted total income 67,62,822 Less: C/f losses of earlier years to the extent of profit &....
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....Rs. Total income as per return, as per Adjustment Explanatory sheet, dt. 28th Feb., 1992 65,10,059 Add: Excess depreciation claimed as worked out in para 1 above 60,837 --------- Revised adjusted total i....
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....ted that two conditions are to be satisfied before levy of additional tax. Firstly, there must be increase in the income declared by the assessee on account of adjustment made under first proviso to s. 143(1)(a). Secondly, such increase in the income must result in the increase of total income. So, if the total income still remains the same despite the adjustment made by the AO, the additional tax cannot be levied in view of the clear and unambiguous language of s. 143(1A). 5. On the other hand, the learned Departmental Representative has contended that total income should be understood as computed for the year under consideration without set off of carry forward losses, otherwise the purpose of the enactment would be defeated. According....
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....ied forward loss of earlier years has to be set off under Chapter VI against the income declared by the assessee under Chapter IV. If there is still positive income, it has to be adjusted against deduction or allowance provided in Chapter VI-A. Therefore, as per the scheme of the Act, the total income is different from the income declared under various heads. It is because of such scheme of the Act, the legislature has used two different expressions in s. 143(1A) i.e. "Income" and "total income". Sub-cl. (A) provides in clear terms that total income must increase as a result of increase in the income declared by the assessee as specified in cl. (i). The provisions are clear and unambiguous and, therefore, question of applying any rule of in....