AURO FOOD LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE prayer in the writ petition is for the issue of a writ of certiorarified mandamus to call for the records relating to the petitioner in C. No. 2031(64)/1988-89-TN-V on the file of the first respondent, and quash the impugned order dated November 7, 1988, and consequently direct the first respondent to waive interest of Rs. 4,29,670 levied under section 220(2) of the Income-tax Act, 1961, for the assessment year 1980-81.

(2.) THE grievance of the writ petitioner-company is that the application filed by it for waiver of interest under section 220(2A) of the Income-tax Act, 1961 (hereinafter referred to as the Act), has not been properly disposed of by the first respondent. THE petitioner-company is an assessee on the records of the Deputy Commissioner of Income-tax, Special Range-V, Madras, the G.I. number being 1-A. It filed its return of income for the assessment year 1980-81 declaring the total income at Rs. 23,06,268 after adjusting carried forward unabsorbed allowances under section 80J and after making a claim for deduction of Rs. 10,06,800 under section 80J for the year. THE company had computed the claim for deduction under section 80J without deducting the liabilities from the capital employed in respect of the units. THE assessment was completed by the Income-tax Officer by his order dated August 29, 1983, and the total income was assessed at Rs. 64,23,287 and tax demanded was Rs. 41,43,022 including interest under section 139(8) of Rs. 66,147 and interest under section 217 of Rs. 81,960. THE balance tax payable was Rs. 36,03,585. THE petitioner-company had requested for stay of collection demanded in the assessment until the decision of the Supreme Court regarding the validity of retrospective amendment to rule 19A for purposes of section 80J was known and stay of tax was granted by the Commissioner.

(3.) LEARNED senior counsel for the Department submitted that the petitioner-company had the benefit of the money from March 17, 1981, to February 27, 1986. It had taken all steps not to pay the amount by indulging in litigation. The balance-sheet of the year 1979 cannot be looked into. The demand is made in the year 1988 and the latest balance-sheet has not been produced. The first two conditions set out in section 220(2A) of the Act have not been satisfied. He prays for dismissal of the writ petition.