DEPUTY COMMISSIONER OF INCOME TAX Vs. ASHOK PAPER MILLS LTD

JUDGEMENT

(1.) The above two writ appeals and the connected Income Tax Appeals preferred by the Revenue are being disposed of by this common judgment.

(2.) In C.R. Nos. 2072/93 and 2089/93, the petitioners challenged the constitutional vires of Section 143 (1-A) of the Income Tax Act, 1961. The learned Single Judge by a common judgment dated 12 th June, 1998 disposed of the Civil Rules holding, interalia, that the provisions in sub-section (1-A)(a) of Section 143 of the Income Tax Act, 1961, substituted by the Finance Act, 1993, is constitutionally valid, but the retrospective operation given to the provisions therein that additional income tax is to be imposed where the loss declared by an assessee is reduced as a result of adjustment is ultra vires the Constitution. The learned Single Judge holding thus, quashed the orders/intimations issued by the Revenue imposing additional income tax under the aforesaid sub-section.

(3.) We have heard M r. K.P. S harma, Learned Counsel for the Revenue and Dr. A. K. Saraf, Learned Senior Counsel for the respondents. The revenue has preferred the appeals challenging the d ecision of the Learned Single Judge to the effect that an additional income tax could not be levied/imposed with retrospective effect i.e. from 1.4.1989.