AURO FOOD LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE writ appeal is filed against the order of the learned single Judge dated 09. 09. 1997 made in W. P. No. 15177 of 1988, in and by which the learned Judge confirmed the order dated 07. 11. 1988 of the Commissioner of Income-tax - first respondent herein.

(2.) FOR convenience, we shall refer the parties as arrayed before the learned single Judge.

(3.) THE petitioner - M/s. Auro Food Limited, Pondicherry filed a petition under Section 220 (2a) of Income Tax Act, 1961 (in short "the Act") on 03. 09. 1988 for waiver of interest before the Commissioner of Income-tax, Madras. It is the case of the petitioner that it had a claim for deduction under Section 80-J of the Act for a larger quantum than that was finally decided. Till the issue was settled by the Supreme Court in its decision in Lohia Machine Tools Limited (152 ITR 308), the petitioner pointed out that it had in its favour the decision of the Madras High Court. In the waiver petition, it is also stated that the demand was not outstanding, since the issue was in its favour and as soon as a revision of the assessment was made consequent to the Supreme Court's decision, the Company had paid its claim and hence, there is no scope for levy of interest under Section 220 (2) of the Act.