INCOME TAX ACT, 1961

Section 143(3)

Assessment - Additional tax under section 143(1A) - Constitutional validity of retrospective amendment of section 143(1A) -

The question which arises for consideration was the constitutional validity of the retrospective amendment to section 143(1A) made by the Finance Act, 1993. Both the Single Bench and the Division Bench of High Court have held that the retrospective effect given to the amendment would be arbitrary and unreasonable, inasmuch as the provision, being a penal provision, would operate harshly on assessees who have made a loss, instead of a profit, the difference between the loss shown in the return filed by the assessee and the loss assessed to income-tax having to bear an additional income-tax @ 20 per cent. Held: This appeal was covered by the judgment of this Court in CIT & Anr. v. Sati Oil Udyog Ltd. & Anr. (2015) 276 CTR (SC) 14 : (2015) 116 DTR (SC) 417 : (2015) 7 SCC 304 : 2015 TaxPub(DT) 1392 (SC), in favour of Revenue holding that retrospective amendment of section 143(1 A) by Finance Act, 1993 for levy of additional tax on reduction of loss was only clarificatory and, therefore, constitutionally valid

Followed:CIT & Anr. v. Sati Oil Udyog Ltd. & Anr. (2015) 276 CTR (SC) 14 : (2015) 116 DTR (SC) 417 : (2015) 7 SCC 304 : 2015 TaxPub(DT) 1392 (SC)

REFERRED :

FAVOUR : Against the assessee

A.Y. :

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