EXPRESS NEWSPAPERS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE writ petition is directed against the order of the Commissioner of Income-tax, Tamil Nadu-V, Madras, the first respondent herein, dated October 29, 1990, passed under Section 220(2A) of the Income-tax Act, 1961.

(2.) THE case of the petitioner-company is briefly stated hereunder :

(3.) IN view of the narration of the case of both the parties in the earlier part of my order, it is unnecessary to refer to the same once again. However, the fact remains that when the appeals were pending before the INcome-tax Appellate Tribunal, the petitioner-company desired to avail of the benefit of the Voluntary Disclosure Act, 1976, and, accordingly, they filed a declaration under Section 6 of the Voluntary Disclosure Act, 1976, declaring income of Rs. 1.15 crores on December 31, 1975. There is no dispute that as per the said declaration, the petitioner-company was liable to pay income-tax of Rs. 69 lakhs on the income declared. On payment of Rs. 11,17,791 regarding the balance tax of Rs. 57,82,209, the petitioner-company made a representation to the Central Board of Direct Taxes, New Delhi, on October 25,1978, requesting for payment of tax in instalments at the rate of Rs. 1.00,000 per month. However, the petitioner-company paid the tax arrears by May, 1980, before the expiry of the instalment period. Thereafter, by proceedings dated September 29, 1980, the petitioner-company was directed to pay a sum of Rs. 22,23,941 representing the interest on the belated payment of income-tax under Section 6 of the Voluntary Disclosure Act, 1976. Section 6 of the Voluntary Disclosure Act, 1976, reads as follows (see [1976] 102 ITR (St.) 49, 51) :