BANWARI PAPER MILLS P LIMITED Vs. DEPUTY CIT

JUDGEMENT

(1.) HEARD learned counsel for the petitioner and Sri Ashok Mobile for the respondents.

(2.) IN the assessment year 1989 -90, the petitioner filed a return of loss of Rs. 66,72,700. The Deputy Commissioner of Income -tax (Assessment), Special Range, Moradabad, issued an intimation to the petitioner, a true copy of which is annexure 2 to the writ petition, in which certain adjustments have been made in the return and an additional income -tax under Section 143(1A) of the Income -tax Act, amounting to Rs. 1,09,022 was imposed. Even after the adjustment it remained a loss return.

(3.) SECTION 143(1A) of the Income -tax Act was introduced by the amendment to the Income -tax Act with effect from April 1, 1989. Under this amendment additional income -tax can be imposed even in the case of loss. The amendment by the Finance Act, 1993, was made with effect from April 1, 1989. Since the amendment is with effect from April 1, 1989, it will apply to the assessment year 1989 -90 and onwards. The Supreme Court in Reliance Jute and Industries Ltd. v. CIT : [1979]120ITR921(SC) has held that the law to be applied is the law in force in the assessment year unless otherwise provided. Hence, the amendment to the law which came into effect from April 1, 1989, will apply to the assessment year 1989 -90 with which we are concerned and hence it will apply to the facts of the present case. As regards the decision of this court in Indo -Gulf Fertilizers and Chemicals Corporation Ltd. : [1992]195ITR485(All) , this decision was delivered in 1992 and hence this court could obviously not be aware of the amendment which was made in 1993. Thus, there is no force in this petition.