2001 (2) TMI 17

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....l arises from the judgment of a learned single judge of the Delhi High Court (see [1993] 200 ITR 584) on a writ petition. The writ petition was made absolute and the Revenue is in appeal. 2. The writ petitioner assessee had returned a net loss. After adjustments had been made by the taxing authorities under the provision of section 143(l)(a), the amount of loss stood reduced. The taxing authorities under the provisions of section 143(1A) sought to levy additional tax upon the assessee in this behalf and this was challenged in the writ petition. Section 143(1)(a) reads thus : "143. (1)(a) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, (i) if any tax or ....

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.... no tax or interest is found due from him after making the said adjustments : Provided also, that an intimation for any tax or interest due under this clause shall not be sent after the expiry of two years from the end of the assessment year in which the income was first assessable." Sub-section (1A), as it originally read, was thus : "(1A)(a) Where, in the case of any person, the total income, as a result of the adjustments made under the first proviso to clause (a) of sub-section (1), exceeds the total income declared in the return by any amount, the Assessing Officer shall, - (i) further increase the amount of tax payable under sub-section (1) by an additional income-tax calculated at the rate of twenty per ....

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....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 per cent. of the tax that would have been chargeable 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 sub-section (1), reduce the amount of such refund by an amount equivalent to the additional income tax calculated under sub-clause (A) or sub-clause (B), as the case may be." 3. The substituted sub....