SONAROME CHEMICALS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE validity of the provision of Sections 276C(1) and 276CC of the Income-tax Act, 1961, has been challenged in these writ petitions as violative of Articles 14 and 21 of the Constitution of India. THE order dated March 22, 1996, passed under Section 279(1) of the Act for the assessment years 1988-89 to 1991-92 has been challenged as without jurisdiction. THE complaint filed before the Special Court for Economic Offences at Bangalore, is also prayed to be quashed.

(2.) A survey was conducted on December 7, 1995, under Section 133A of the Act. Notice under Section 148 was issued on December 15, 1995. Notices dated February 14, 1996, and March 1, 1996, were issued as to why the prosecution proceedings should not be launched against the petitioners for not filing the returns in time. The Commissioner of Income-tax not satisfied with the reply, authorised the Assistant Commissioner of Income-tax to file a complaint under Sections 276C(1) and 276CC of the Act. Interest under Sections 234A, 234B and 234C has been levied by the assessing authority. It is stated that, since the returns were accepted under Section 143(1)(a) of the Act, vide assessment order dated March 29, 1996, subsequently, the assessment order under Section 143(1) read with Section 147 was passed, levying interest. Interest under Sections 139(8), 215 and 217 of the Act has to be charged for the assessment year 1988-89 and for the subsequent period, interest under Sections 234A, 234B and 234C of the Act has to be levied, which has, in fact, been levied and even payment thereof, has been made for 1989-90 to 1990-91 and application for waiver has been moved for 1988-89. The provisions of Sections 276C(1) and 276CC of the Act are as under :

(3.) ON the basis of the averments made in the objections and the arguments, the following two points are to be decided :