DALMIA DAIRY INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition revisional order dated 12.12.1978 passed by the Commissioner of Income-tax, Delhi purported to be under Section 264 of the Income-tax Act, 1961 is in question.

(2.) By reason of the said order the petitioner's application for exemption from payment of interest in terms of Section 215(1) read with Rule 40 of the Income-tax Rules, 1960 was allowed in part. The said order was passed for the year ending 30.9.1974 for the assessment year 1975-76. The petitioner furnished a return showing his income during the relevant assessment year on 30.6.75. He furnished a revised Income-tax return. The petitioner, before the assessing authority claimed depreciation. An order of assessment was made on 2.6.1978 assessing the total income at Rs. 81,38,810.00 and holding the petitioner liable to pay a sum of Rs. 37,13,047.00 on account of income tax and interest. A demand notice for the said sum was accordingly served on the petitioner. The petitioner applied for waiver of interest in terms of Section 215 of the Act. The said claim of the petitioner was rejected by an order dated 24.8.1978 whereafter the petitioner filed a revision petition in terms of Section 264 of the Act which as noticed hereinabove, was allowed in part. In its impugned order, the second respondent rejected partly the prayer for waiver of interest inasmuch as, interest for a period of 15 months i.e. for the period 1.4.1975 to 30.6.76 was not waived and interest for the period for 1.7.76 to 21.6.78 was waived.

(3.) Learned counsel appearing for the petitioner would submit that the Commissioner of Income-tax committed an illegality in passing the impugned order in so far as it proceeded on the basis that the interest could not be fully waived. The petitioner contended that the demand of interest is attributable in full to the additions and disallowance where fOr the petitioner is not responsible and the same was disputed by the petitioner.