Commnr. Of Income Tax, Gauhati & Ors vs M/S. Sati Oil Udyog Ltd. & Anr

The Supreme Court upheld the retrospective amendment to Section 143(1A) of the Income Tax Act, 1961, stating that while the amendment was challenged as arbitrary and unreasonable, it serves the purpose of preventing tax evasion. The Court noted that the provision applies equally to profits and losses, and thus does not violate constitutional principles. The judgment of the Gauhati High Court was set aside, affirming the validity of the retrospective amendment.