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TMI Blog2017 (10) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was a government undertaking and was since long running into huge losses year after year. The partial disallowance of depreciation in the year under consideration in any case would not result into any evasion of tax. In short, the assessee would earn no benefit out of the reduced depreciation which can always be claimed in later years. The assessee was a government company and was running into huge losses year after year consistently. The reduction of loss was only on account of disallowance of depreciation claimed by the assessee. The Tribunal also noted that if the disallowance was on the dispute of the machinery not having been installed during the year under consideration, such depreciation would always be available to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1961 ('the Act' for short). This had an effect of reducing the loss declared by the assessee in the return of income. The Assessing Officer was of the opinion that with the aid of the provisions of subsection (1A) of section 143 as amended by Finance Act, 1993 with retrospective effect from 01.04.1989 on such reduced losses, any tax at the rate of 10% would have to be levied. The Tribunal however by the impugned judgment, allowed the assessee's appeal and reversed the orders passed by the Assessing Officer and Commissioner of Income Tax (Appeals). The Tribunal relied upon and referred to the judgment of the Supreme Court in case of Commissioner of incomeTax and others v. Sati Oil Udyog Ltd. and another reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e invoked only where the lesser amounts stated in the return by the assessee was with an attempt to evade tax lawfully payable. The Court held and observed as under: 22. Taking a cue from the Varghese's case, we therefore, hold that section 143(1A) can only be invoked where it is found on facts that the lesser amount stated in the return filed by the assessee is a result of an attempt to evade tax lawfully payable by the assessee. The burden of proving that the assessee has so attempted to evade tax is on the Revenue which may be discharged by the Revenue by establishing facts and circumstances from which a reasonable inference can be drawn that the assessee has, in fact, attempted to evade tax lawfully payable by it. Subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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