TaxTMI 
TaxTMI 
2006 (7) TMI 190
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....the Tribunal") In I.T. A. Nos. 717/Chand./2000 and 718/Chand./2000, dated February 21, 2003, for the assessment years 1997-98 and 1998-99 respectively : "Whether the Income-tax Appellate Tribunal was right in law in holding that the law on the date of passing the order under section 143(1)(a) will apply and not the law on the date of filing the return of income as held by the hon'ble Supreme Court in CIT v. Hindustan Electro Graphites Ltd. [2000] 243 ITR 48 ?" 3. The brief facts of the case are that the assessee filed its return of income, which was processed by the Assessing Officer under section 143(1)(a) of the Income-tax Act, 1961 (for short "the Act") and keeping in view the legal position on the subject, undisputed facts a....
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....t contended that the issue was debatable as the law on the date of filing of the return allowed for the deduction and retrospective amendment was challenged before the hon'ble Supreme Court. Section 143(1)(a) empowers the Assessing Officer to disallow the deduction claimed by the assessee where the assessee is entitled for the same on the face of return. The Assessing Officer, in our opinion, while processing return has to apply the law which was in existence at the time of processing the return and was applicable to the assessment year in respect of which the return has been processed by the Assessing Officer. The law has been amended with retrospective effect and the amended law was applicable to the assessment year under consideration. T....
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....d in this case was only charging additional tax. There was retrospective amendment under section 28 by which clause (iiib) was inserted with retrospective effect and due to this retrospective effect, cash assistance received by the assessee become the income of the assessee. The Assessing Officer made the prima facie adjustment while processing the return in respect of cash compensatory support and imposed additional tax on the assessee under section 143(1)(a). Neither the appellate authority nor the hon'ble High Court or the hon'ble Supreme Court has held in this case that no prima facie adjustment under section 143(1)(a) can be made where the retrospective amendment was made. Thus, we find no merit in the first ground of appeals of the as....
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.... to interest on the amount. 8. We have considered the submissions made by learned counsel for the assessee and also perused the judgment of the hon'ble Supreme Court in CIT v. Hindustan Electro Graphites Ltd.'s case [2000] 243 ITR 48. Learned counsel for the assessee has not cited any judgment to support his argument to the effect that while processing the return under section 143(1)(a) of the Act, the assessing authority is not to proceed in terms of law as existed on the date of processing. 9. As far as the judgment of the hon'ble Supreme Court in CIT v. Hindustan Electro Graphites Ltd.'s case [2000] 243 ITR 48 is concerned, the same was a case where an additional tax, a kind of penalty, under section 143(1A) of the Act was sought t....