2003 (1) TMI 644

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....turned by the assessee was reduced after prima facie adjustment made by the Assessing Officer under section 143(1)(a) of the Act. This contention of the assessee was not agreed by the department. Therefore, the present appeal was filed by the assessee. 3. Both parties were heard regarding the issue raised by the assessee in this appeal and its legal implications. 4. The necessary facts that are admitted by both the parties are as follows. The assessee has filed its return of income for the period under consider-ation on 19-7-1991 showing a net loss of Rs. 11,67,005. This return was processed by the Assessing Officer under section 143(1)(a) on 28-2-1992 and arrived at a net loss of Rs. 9,72,540. As the net loss was reduced on prima fac....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the arguments advanced on behalf of both the parties and the case laws relied on by them, we find that the admitted facts that are very crucial for adjudicating the issue raised by the assessee are that the assessee has filed its return on 19-7-1991 for the year under consideration showing a net loss of Rs. 11,67,005. This was processed by the Assessing Officer under section 143(1)(a) by issuing intimation dated 28-2-1992 disallowing certain claims prima facie and determining the net loss at Rs. 9,72,540 and levied additional tax under section 143(1A) at Rs. 17,502. It is contended on behalf of the assessee during the course of hearing that the return is to be processed for the assessment year basing on the law prevailing at the time of fil....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is aspect the Hon'ble High Court was pleased to hold that in view of the imprint of penalty that is prevalent in the additional tax leviable under section 143(1A) will not have any retrospective effect. It has prospective effect only. Therefore, in this view of the matter the learned representative sought for setting aside the orders of the Revenue authorities and upholding the contention of the assessee that the levy of additional tax by the department is unsustainable under law. 8. Contrary to this, the learned Departmental Representative has vehemently contended that in view of the specific provision making it retrospective with effect from 1-4-1989 the department is well within its powers to enforce the same to the period under consi....