In Brief
The Rajasthan State Electricity Board filed returns showing a loss, claiming 100% depreciation which was inadvertently excessive under amended law (should have been 75%). The Income Tax authority imposed additional 20% tax on the reduced loss. The Supreme Court held that Section 143(1-A) of the Income Tax Act applies only to intentional tax evasion, not bonafide mistakes. Since the assessee's error was inadvertent and no tax was actually evaded (it remained in loss), the additional tax demand was quashed. The Court emphasized that the Revenue bears the burden of proving tax evasion intent."
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