GIRNAR INVESTMENT LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a petition filed by M/s Girnar Investment Ltd. seeking issue of a writ or order or direction quashing the order dated 10th June, 2010 passed by the Commissioner of Income Tax under Section 220(2A) of the Income Tax Act (Act, for short). A prayer is also made seeking direction to the CIT not to levy interest under Section 220(2) of the Act for the period from 20.5.1998 to 23.8.2004 for which period allegedly there was no demand outstanding and payable by the petitioner. A further prayer is made for issuance of a direction to the respondents to refund the tax along with interest already recovered by them as interest under Section 220(2). A direction is also prayed for, for waiver of the interest charged under the above Section.

(2.) The brief facts which gave rise to the filing of the writ petition may be noticed.

(3.) The petitioner is a public limited company having its registered office in Delhi. It was carrying on finance and investment business at the relevant time and in respect of this business, it was assessed to income tax in Delhi. In respect of the assessment year 1995-96, the petitioner was assessed to income tax by order dated 7.10.1997 on net taxable income of Rs.1,26,34,604/-. The tax calculated on the taxable income amounted to Rs.21,44,521/-. The calculation was made in Form No.ITNS-150. A demand notice for the aforesaid amount was issued under Section 156 of the Act along with the assessment order. The assessment order and the demand notice were served on the petitioner on 10.12.1997.