MADRAS FERTILIZERS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE assessee is aggrieved by the order of the Commissioner by which the assessee's request for waiver of interest, under Section 220(2A) of the Income-tax Act, 1961, for the assessment years 1979-80. 1980-81 and 1981-82 was rejected. THE order of the Commissioner is a very elaborate order.

(2.) COUNSEL for the assessee contended that for the assessment years in question, it was necessary to compute the extent of relief available under Section 80J and as that Section has been amended with retrospective effect from 1972 and the validity of the amendment had been under challenge before the Supreme Court and the law had remained uncertain till the judgment of the Supreme Court was pronounced in the case of Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308, upholding the validity of the Finance (No. 2) Act, 1980, in so far as it amended Section 80J by incorporating the provisions of rule 19A, as sub-Section (1A) in Section 80J, with retrospective effect from April 1, 1972, the computation took time. The Constitution Bench held that, that amendment was merely clarifica-tory in nature and was valid. Learned counsel for the assessee invited the attention of this court to the dissenting judgment in that case, by one of the judges constituting that Bench wherein it was observed that the assessee would have to face a very grave situation if the relief granted in the earlier years was to be withdrawn with retrospective effect. It was further observed that (page 385) :