Assessing Officer levied additional tax under section 143(1A) of the Income-tax Act, 1961 on the amount of loss reduced in the intimation issued under section 143(1)(a) of the Act and the High Court held that if the adjustment made by the Assessing Officer resulted in reduction of loss on account of disallowance of part or full depreciation claimed by the assessee, it would justify levy of additional tax under section 143(1A), on appeal allowing the appeal the Court held that the additional tax levied on the assessee could not be lawfully recovered and the demand raised by the Department was set aside.(AY.1991-92)
Steel and Industrial Forgings Ltd. v. Dy. CIT (2022) 449 ITR 164 / 220 DTR 482 /(2023) 291 Taxman 448/ 331 CTR 94(SC) Editorial: Decision in Steel and Industrial Forgings Ltd. v. Dy. CIT (2009) 318 ITR 18 (Ker)(HC), reversed.
S. 143(1)(a) : Assessment-Intimation-Prima facie adjustment-Additional tax-Depreciation-Reduction of loss-Leviable only where attempt to evade tax proved-Department was to be set aside [S. 143(IA).