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TMI Blog1996 (7) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... oner No. 1 in the State Bank of Indore be also quashed. Likewise, it is prayed that the notice dated September 1, 1994, annexure "P-11", issued by respondent No. 3 be quashed. Petitioner No. 1 is a private limited company carrying on the business of manufacturing of drugs. Petitioner No. 2 is the managing director and the shareholder in petitioner No. 1-company and is interested in the various affairs of the company. Petitioner No. 1 filed a return showing a business loss of Rs. 14,09,666 and a carry forward of loss of the preceding two years, i.e., assessment years 1989-90 and 1990-91. Total loss inclusive of investment allowance and depreciation for three years from 1989-90 to 1991-92 is amounting to Rs. 67,17,825. Respondent No. 2, D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by order dated March 9, 1993. Petitioner No. 1 also filed an appeal against an order dated September 30, 1992, which was passed under section 154 of the Act before the Commissioner of Income-tax (Appeals), Indore, respondent No. 4. Respondent No. 2 by order dated November 16/23, 1994, again attached the amount standing to the credit of petitioner No. 1 in the bank account in the State Bank of Indore, as a result of which a sum of Rs. 1,85,090 was attached. He also issued recovery notice for the said amount. Petitioner No. 1 made a representation dated September 22, 1994, to respondent No. 3 for not pressing the demand till the disposal of the appeal pending before the first appellate authority (CIT (Appeals)). Therefore, the petitioner h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional income-tax) equal to twenty per cent. of the tax that would have been chargeable on the amount of the adjustments as if it had been the total income of such person and specify the additional income-tax so calculated in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1) ; " According to the unamended provision, what was being taxed was the difference of income between the original return and after adding to the return the amount of loss which is added to the income and when that tax is worked out, then the difference of the tax used to be charged. But now, the actual deduction of the loss has been directly made taxable at 20 per cent. of tax on that income as additional tax. Now, the provision has been m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the law prospectively and this power also denotes the competence of Parliament to make the law retrospective also. In this connection, reference can be made to a decision in the case of Rai Ramkrishna v. State of Bihar [1963] 50 ITR 171 (SC) ; AIR 1963 SC 1667, wherein their Lordships have held as under : " The legislative power conferred on the appropriate Legislatures to enact law in respect of topics covered by the several entries in the three Lists can be exercised both prospectively and retrospectively. Where the Legislature can make a valid law, it may provide not only for the prospective operation of the material provisions of the said law, but it can also provide for the retrospective operation of the said provisions. " It is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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