MANOJ KUMAR GUPTA Vs. UNION OF INDIA

JUDGEMENT

(1.) We have heard Shri Nikhil Agarwal, learned counsel for the petitioner. Shri Dhananjay Awasthi appears for the income tax department.

(2.) This writ petition is directed against an order passed by the Commissioner of Income Tax, Varanasi, in so far as it rejects the application of the petitioner in respect of 75% of the interest imposed on him and for quashing levy of interest under Section 243A and 243B of the Act.

(3.) The petitioner filed original return in Form No.4A declaring income of Rs. 37,000/- and paying presumptive tax of Rs. 1400/- under Section 115Nof the Income Tax Act, as it stood at the relevant time on 29.3.1994. A notice under Section 148of the Act was issued in the year 1997 on which the petitioner informed the Assessing Authority (AO) that he has already deposited Rs. 1400/- with the return. The petitioner, however, submitted another return of income in compliance with the notice under Section 148 and disclosed that on 11.3.1994 he had purchased property worth Rs. 10,25,000/- explaining the source of income from which the property was purchased.