1994 (4) TMI 62

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.... the return by his proceedings, exhibit P-3, dated October 24, 1991, under section 143(1)(a) of the Act. Thereafter he purported to rectify the order, exhibit P-3, on the ground that the petitioner had claimed depreciation at an amount much larger than that allowable and also on the ground of disallowance of another item. Accordingly, he held that a total amount of Rs. 44,05,251 had to be disallowed out of the accumulated loss of Rs.2,79,43,720 and reduced the total loss for the year to Rs. 35,65,135 and the brought forward loss to Rs. 1,99,77,334. In doing so he also levied additional tax at 20 per cent. on the amount of Rs. 44,05,251 under section 143(1A) and demanded the said amount from the petitioner. Being aggrieved by the rectificati....

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....vy will be sustainable under the residuary entry 97, which authorises Parliament to legislate on any matter not enumerated in List II or List III including any tax not mentioned in either of those Lists. The petitioner has no case that the levy in question is one falling under List II or that the subject-matter thereof falls under List II or List III. Entry 97 authorises Parliament to legislate on any subject so long as it is not enumerated in List II or List III. It is now well-settled that levy of tax can also be justified under this entry as was done in the case of gift-tax (Second GTO v. D. H. Nazareth [1970] 76 ITR 713 ; AIR 1970 SC 999), wealth-tax (Union of India v. Harbhajan Singh Dhillon [1972] 83 ITR 582 (SC)), a tax on building c....