ABHISHEK CEMENT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition under Article 226 and 227 of the Constitution of India impugns intimation dated 29.3.1990 issued by the Assessing Officer under Section 143(1)(a) of the Income Tax Act, 1961 (for short "the Act") creating a demand of Rs.4,36,108/-. The amount determined was subsequently revised by an order dated 19.3.1991 under Section 154 of the Act. 2. For the assessment year 1989-90, the petitioner had field a return claiming loss of Rs.99,99,575/-. In the adjustment explanatory sheet enclosed with the intimation under Section 143(1)(a), the Assessing Officer had made adjustments on following grounds/reasons:- <FRM>JUDGEMENT_5244_ILRDLH22_2012_1.html</FRM>

(2.) This created a demand of Rs. 4,36,108/- towards additional tax.

(3.) As far as cash payments, charity & donation, disallowance towards entertainment and disallowance on depreciation is concerned, in our view the said adjustments are impermissible and not mandated under Clause (iii) to Section 143(1)(a) of the Act. The section 143(1)(a) at the relevant time was as under: