- ( 1. ) WE have heard Shri R.K. Upadhyay, for the appellants. Shri R.R. Agrawal appears for the respondent- assessee. This appeal has been filed under Section 260A of the Income Tax Act, 1961 by the revenue against the order of the Income Tax Appellate Tribunal dated 29th March, 2000 by which it has allowed the appeal and has set aside the order of the CIT (A) dated 3.8.1999, upholding the A.Os. orders under Section 154(1)(b) of the Income Tax Act for the A.Y. 1996-97.
( 2. ) THE respondent assessee has two units. In respect of unit no. I an income of Rs. 1,28,69,006/- was declared and in respect of unit no. II it declared loss of Rs. 1,14,03,131/-. The respondent -assessee claimed deduction under Section 80IA at 30% on the income of the first unit and thereby inspite of a gross total income of both the units of Rs. 14,65,875/-, declared the income to be Nil, and carried loss of Rs. 23,94,827/- forward to the A.Y. 1997-98.
( 3. ) THE return of the income was processed under Section 143(1)(a) on nil income vide A.Os order dated 16.10.1997. No appeal was filed against the assessment, though the carry forward of the loss of Rs. 23,94,827/- was denied. Since the returned income was at a loss of Rs. 23,94,830/ - and assessed income was nil, additional tax under Section 143(1)(a) was chargeable on the difference of returned and assessed income at Rs. 23,94,830/-. The A.O. had failed to do so and consequently a show cause notice was issued under Section 154(1)(b) to the respondent -assessee for rectifying the mistake. ;