TaxTMI 
TaxTMI 
2002 (2) TMI 38
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....porated under the Companies Act, 1956. For the assessment year 1993-94, the appellant filed a return showing the total income (before deductions under Chapter VI-A) of Rs. 1,49,14,477. After scrutiny of the said return under section 143(1A), the Assessing Officer sent an intimation to the appellant under section 143(1)(a)(i) of the Act intimating levy of additional income-tax being at Rs. 4,15,018. The additional income-tax was levied by the Assessing Officer because of addition of Rs. 33,00,000 which the appellant has claimed as deduction under the head "Interest tax". After receiving the above intimation, the assessee filed an application under section 154 of the Act, claiming that it was entitled to 100 percent depreciation in respect o....
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.... of Income-tax (Appeals), who, considering the facts noticed above and the provisions contained under section 143(1A), held that the inclusion of additional income-tax in the demand notice was impermissible in law. The Department, being aggrieved by this order, questioned the same before the Income-tax Appellate Tribunal, which by its impugned order dated June 29, 2001, by wrongly relying on the judgment of the Supreme Court in the case of CIT (Asst.) v. J. K. Synthetics Ltd. [2001] 251 ITR 200 has set aside the order of the Commissioner of Income-tax (Appeals) and restored the levy of additional income-tax. In order to appreciate the contentions raised at the Bar and the reasoning given by the Tribunal, we have to look at sub-section (....
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....nd is due under subsection (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. (b) Where as a result of an order under sub-section (3) of this section or 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 income-tax 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 ....