9911796707
TMI Blog1999 (5) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... 59 Set off against the carried forward losses as assessed and claimed. 65,10,059 ---------- Total income Nil ---------- 3. The said return was processed under s. 143(1)(a) by the AO, who made the adjustment of Rs. 2,52,763 on account of excess depreciation to the business income declared by the assessee which was set off against the carried forward losses of earlier years and finally assessed the total income at 'Nil' in the following manner: Rs. Returned total income 65,10,059 Adjustments under s. 143(1)(a): Add: Excess depreciation claimed (25% of Rs. 10,11,054) 2,52,763 --------- Adjusted total income 67,62,822 Less: C/f losses of earlier years to the extent of profit 67,62,822 --------- Nil --------- Thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... understood as computed for the year under consideration without set off of carry forward losses, otherwise the purpose of the enactment would be defeated. According to him, the provisions as originally enacted were amended retrospectively to cover such mischief. Even in loss cases, where no tax is payable, the legislature has intended to levy additional tax. 6. Rival submissions have been considered carefully. The relevant portion of s. 143(1A) is reproduced as under: "(1A)(a) Where as a result of the adjustments made under the first proviso to cl. (a) of sub-s. (1), (i) the income declared by any person in the return is increased; or the AO shall, (A) in a case where the increase in income under sub-cl. (i) of this clause has increase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income declared by the assessee as specified in cl. (i). The provisions are clear and unambiguous and, therefore, question of applying any rule of interpretation does not arise. So, the word income in cl. (i) would mean income declared by the assessee under various heads while the words "total income" would mean income as finally computed under IT Act. Therefore, the contention of the learned Departmental Representative that total income should include only sum total of the income before the set off of carried forward losses of earlier years cannot be accepted since total income has to be computed by applying the provisions of Chapters VI and VI-A. 7. In the present case, no doubt, there is increase in the income declared by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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