INDIAN DRUGS AND PHARMACEUTICALS LTD Vs. UOI

JUDGEMENT

(1.) Indian Drugs and Pharmaceuticals Ltd., a public sector undertaking, has filed the present writ petition for quashing of the intimation dated April 4, 1990, under section 143(1)(a) of the Income-tax Act, 1961 ("the Act", for short). The petitioner has also prayed for quashing of the consequential orders passed thereafter by the Assessing Officer rejecting the application for rectification in respect of two items (i) unpaid bonus of Rs. 1,57,05,083, and (ii) unpaid taxes of Rs. 1,67,76,886. We may record that some other adjustments were also made in the intimation under section 143(1)(a) but these have been deleted/withdrawn by the Assessing Officer while passing rectification orders under section 154 of the Act. These orders are dated July 17, 1990, and September 24, 1990. With regard to the unpaid bonus and taxes in the adjustment sheet, the Assessing Officer has mentioned that he relies upon the audit report paragraph 7(a) and 7(d).

(2.) In the rectification application dated May 22, 1990, which was filed before the Assessing Officer, it was stated as under:

(3.) The assessee, during the course of the rectification proceedings, had filed full details for the payments made towards bonus up to the date of filing of the return and also actual payment made along with a photocopy of challans towards sales tax, surcharge, ESI, etc. Copy of the said letters have been placed on record by the petitioner. With regard to bonus, it stated that full details of the actual bonus paid were earlier not available as the offices were located at Madras, Gurgaon, Hyderabad and corporate office. These details and proof were filed with the rectification application.