DYNAVISION LIMITED Vs. INCOME TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) W.P.No.7060 of 2000 is filed by the petitioner seeking the relief of issuance of writ of certiorarified mandamus to call for the records relating to the order passed by the Third Member, namely, the second respondent in ITA No.2943/MDS/1993 for the Assessment year 1990-91 on 3.12.99 and quash the same as being ultra vires the provisions of Sec.255(4) of the Income Tax Act (hereinafter referred to as the I.T. Act) and also opposed to the principles of natural justice and consequently issue a Mandamus directing the present incumbent President of ITAT within a reasonable time as this Court may deem fit to refer the matter to a 3rd Member including himself or any other member nominated by him and request such 3rd Member or other members of the ITAT to decide on which of the point or points they agree which have already been referred to by the two differing Members as per the questions formulated by them under Section 255(4) on 22.10.97 and dispose of the matter within such time.

(2.) W.P.No.2281 of 2008 is filed by the petitioner seeking the relief of issuance of writ of certiorari to call for the records comprised in the proceedings of respondents 1 and 2 bearing P.A.N.No.AAACD8639F dated 21.1.2008 and quash the same as illegal and unconstitutional.

(3.) THE brief facts are as follows: THE petitioner is a public limited company incorporated under the Companies Act, 1956 engaged in manufacturing and selling of Television sets and audio equipments. For the assessment year 1990-1991, for which the year ended by 31.3.1990, the petitioner had filed a return on 31.12.1990 disclosing a loss of Rs.35,39,813/-. However, the assessee admitted the income of Rs.6,53,087/- under Section 115J of the Income -Tax Act. THE said return was processed under Section 143 (1)(a) on 20.02.1992. While scrutinising the accounts, the Assessing Officer found that the petitioner company had changed the system of accounting in respect of customs duty and bond interest. All along the assessee company had been accounting customs duty and bond interest in respect of materials lying at customs bonded ware-house at the time of removal of materials from the bonded ware-house. In the accounting year in question, the petitioner had made provision on accrual basis in the accounts for Rs.493.31 lakhs towards customs duty and bond interest in respect of materials lying at the customs bonded ware-house and the same has been included in the value of closing stock. THE petitioner has stated that the assessee made a provision in its accounts towards customs duty and bond interest, which is as follows: