Object Of Section 143(1a) Is The Prevention Of Evasion Of Tax

Last updated: 03 January 2023
Quick Summary
The Supreme Court has ruled that the primary purpose of Section 143(1A) of the Income Tax Act is to prevent tax evasion. For additional tax to be levied under this section, the Revenue must prove that the assessee intentionally attempted to evade lawful tax payments. The burden of proof lies with the Revenue, requiring them to present facts and circumstances that reasonably infer such an attempt. Consequently, the Court set aside a previous division bench order upholding the levy of additional tax in this specific case.

Court :
Supreme Court of India

Brief :
The object of S. 143(1A) isthe prevention of evasion of tax - The burden of proving that the assessee has soattempted to evade tax is on the Revenue which may be discharged by establishingfacts and circumstances from which a reasonable inference can be drawn thatthe assessee has, in fact, attempted to evade tax lawfully payable by it.

Citation :
Rajasthan State Electricity Board v. Dy. CIT (2020) 424 ITR 704 187 DTR 457 / 313 CTR745 / 115 taxmann.com 330 / 273 Taxman 1 (SC).

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Broadcasts
  • Daily E-Newsletter
  • Unlimited Judgements Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

 
Comments


Recent Judgments :

  1. Forest Development Tax Demand, Collection and Refund Subject to Final Outcome of Pending Cases
  2. SC : Extended Limitation Cannot Be Invoked Where Department Was Aware of Valuation Facts
  3. SC : Selling Shares While in Possession of UPSI Constitutes Insider Trading Even if No Profit Is Made
  4. SC : Laser Imagers Compatible with Machines Under Different Tariff Headings Classifiable Under CTH 9033
  5. Education Consultancy Services to Foreign Universities Not Intermediary Services; Refund of IGST on Export of Services Allowed
  6. Penalty Cannot Be Confirmed Beyond What is Specified in Statutory Form GST DRC-01
  7. Non-Supply of Field Visit Report Vitiates Rejection of Revocation Application
  8. Alternative Remedy before GSTAT to be Exhausted Despite Allegation that Adjudication Travelled Beyond SCN
  9. ITAT Jodhpur: AO Allows ₹2.61 Crore Deduction under Sections 54EC and 54F; Assessee's Appeal Dismissed as Infructuous
  10. CESTAT Revokes Suspension of Customs Broker Licence for Non-Compliance with Mandatory 15-Day Hearing Requirement

View More Judgments »


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member CA DamodaramCA DamodaramPro Member Ritesh PanpaliyaRitesh PanpaliyaPro Member PARAS CHHAJEDPARAS CHHAJEDPro Member CA Rahul PatwardhanCA Rahul PatwardhanPro Member Nandkishore VishwakarmaNandkishore Vishwakarma
Subscribe to Pro
Join an elite circle of professionals

Browse by Category