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TMI Blog2014 (7) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... erence in income and deduction Rs. 8,569/-. b. Travelling expenses incurred in excess of rule 6-D of I.T. Rules-62 Rs. 2,16,696/- c. Investment allowance on distillery unit Rs. 10,26,678/- d. Disallowance u/s 43-B of the IT Act Rs. 2,54,829/- e. Loss of sale of asset Rs. 10,156/- f. Adjustment on account of depreciation claimed by the assessee on Tube Well Rs. 19,831/- As a result of the aforesaid adjustment, additional tax as well as a demand under Section 115-J of the Act was created. The assessee, being aggrieved, filed an application under Section 154 of the Act for rectification objecting to the various adjustments made by the Assessing Officer and also against the tax demanded from the assessee. The Assessing Officer, by its orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment of the Allahabad High Court in Indo Gulf Fertilizers and Chemicals Corporation Ltd. Vs. Union of India and another, 195 ITR 485. The revenue, being aggrieved, by the order of the appellate authority filed an appeal before the Tribunal, which was dismissed. The revenue, being aggrieved by the order of the Tribunal, has filed the present appeal under Section 260-A of the Income Tax Act, which was admitted on the following questions of law:- "(i) Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in confirming the order of the C.I.T. (A) directing the A.O. To modify the order u/s 154 of the Act and to delete the additional tax in view of the jurisdictional High Court decision report in 195 ITR 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, - (i) in a case where the additional income tax is increased, the Assessing Officer shall serve on the assessee a notice of demand under section 156; (ii) in a case where the additional income tax is reduced, the excess amount paid, if any, shall be refunded. Explanation: For the purposes of this sub-section, "tax payable on such excess amount" means,-- (i) in any case where the amount of adjustments made under the proviso to clause (a) of sub-section (1) exceed the total income, the tax that would have been chargeable had the amount of the adjustments been the total income; (ii) in any other case, the difference between the tax on the total income and the tax that would have been chargeable had such total income been reduced by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicate that the findings of the appellate authority was also challenged before the Tribunal other than the finding given by the appellate authority on the issue of additional tax chargeable where the net result of adjustment was a negative figure. Section 143(1A) provides that where the total income as a result of adjustment made by the Assessing Officer exceeds the total income declared in the return, the Assessing Officer would be obliged to levy additional income tax. The said provision makes it apparently clear that additional income tax is payable only as a result of adjustment made by the Assessing Officer but where the adjustments so made has been deleted by the appellate authority on merits, the question of payment of additional ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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