C.I.T., BHOPAL vs HINDUSTAN ELECTOR GRAPHITES LTD

The Supreme Court addressed the legality of the Tribunal's decision to delete an addition made by the Assessing Officer under Section 143(1)(a) of the Income Tax Act, 1961. The Court held that the retrospective insertion of Clause (iii)(b) in Section 28, which made cash assistance against exports chargeable to tax, was applicable to the assessment year 1989-90. The Court ruled that the Assessing Officer was justified in adding the cash assistance amount to the taxable income, thereby upholding the addition made under Section 143(1A) and the interest charged under Section 234.