MUZAFFARNAGAR STEELS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS writ petition is filed against the order of the Commissioner dated August 28, 1987, under Section 264 of the Income-tax Act.

(2.) THE petitioner is a public limited company. For the assessment year 1984-1985, it did not file an estimate of advance tax which ought to have been filed on or before June 15, 1983. THE petitioner filed the return for the assessment year 1984-85 on May 26, 1984, disclosing a substantial loss. Indeed, the petitioner purported to carry forward the losses incurred in the previous years. THE petitioner was claiming losses because he was claiming the benefit of Section 80J on borrowed capital.

(3.) YET another circumstance relied upon by the petitioner is that his application for waiver of penalty levied for the same default has been allowed by the Commissioner of Income-tax holding that there were sufficient grounds for waiving the said penalty. The petitioner says that the grounds urged by him for waiving the penalty and for waiving the interest are identical. This argument may also be considered by the Commissioner subject to its relevancy and evidentiary value.