DEPUTY COMMISSIONER OF INCOME TAX ASSESSMENT Vs. SATI OIL UDYOG LIMITED

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 of 1993 and 2089 of 1993 [Sati Oil Udyog Ltd. vs. CIT (1999) 152 CTR (Gau) 245 : (1998) 232 ITR 502 (Gau) : TC S10.1196], the petitioners challenged the constitutional vires of S. 143(1A) of the IT Act, 1961. The learned single Judge by a common judgment dt. 12th June, 1998, disposed of the civil rules holding, inter alia, that the provisions in Sub -S. (1A)(a) of S. 143 of the IT Act, 1961, substituted by the Finance Act, 1993, are 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.) THERE being no challenge to the decision of the learned single Judge about the constitutional validity of the provisions of Sub -S. (1A)(a) of S. 143, this Court is only required to deal with the second limb of the order related to the retrospectivity of the provisions of the aforesaid sub -section substituted by the Finance Act, 1993. In order to appreciate this question, it is necessary to place hereinafter the facts which eventually culminated in the above two writ petitions.