VAATA INFRA LTD. Vs. THE INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner a company engaged in the business of manufacturing, commissioning, operating and maintenance of Wind Mills and generation and distribution of power there from, has filed this Writ Petition for issuance of a Writ of Certiorarified Mandamus, to quash the proceedings of the respondent dated 12.06.2012 under Section 220(2) of the Income Tax Act, 1961 (the Act).

(2.) THE impugned proceedings states that while giving effect to the order of the Income Tax Settlement Commission, Chennai, (Settlement Commission) the demand of Rs. 23,16,31,123/ - raised vide order dated 31.03.2006, was reduced to Rs. 4,72,72,689/ - and that from the verification of records, it was found that the demand has been paid on various dates and was fully paid in July 2007 and the interest payable under Section 220(2) of the Act for the delayed payment of tax works out to Rs. 73,43,132/ - and this demand may be paid immediately.

(3.) IN the counter affidavit filed by the respondent in the said Writ Petition, it was submitted that the business loss eligible to be carried forward for the preceding eight assessment years has been arrived at and duly set off in accordance with the provisions of the Income Tax Act. Petitioner's petitions for rectifications in various years have been considered and after giving effect to the order of the Hon'ble ITSC, refunds in respect of Assessment years 2000 -2001 and 2001 -02 amounting to Rs. 22,52,311'/ - has been adjusted against the demand payable by the petitioner. Further, the refunds due to the petitioner for the assessment years 2008 -09 and 2011 -12 for a sum of Rs. 49,53,180/ - have also been adjusted against the demand payable by the petitioner for assessment year 2009 -10 and earlier years. The petitioner's contention of further refunds, if any, needs to be reconciled and worked out after due consideration of pending proceedings and adjustments as assessee's issues cover a period of 10 years from assessment year 2000 -01 to 2009 -10. Even otherwise, after reconciling all such TDS claims/rectifications the same is to be adjusted against the pending demand of Rs. 3,27,18,094/ - as per the due procedure and process of the law enshrined in I.T., Act. Further, loss of about 31.06 crores including those carried forward by these two years has been allowed to be carried forward and same is set off against the business income for 2009 -10. Hence, department has duly discharged its august duty with due diligence considering huge quantum of pending demand.