J. K. INDUSTRIES Vs. KRISHNA SAHAL

JUDGEMENT

(1.) Petitioner is a Registered Partnership firm and was carrying on business, inter alia, of ship breaking. Petitioner is seeking to challenge an order dtd. 30/4/2004 passed under Sec. 264 of the Income Tax Act, 1961 (the "Act") by Respondent No.1, rejecting application of Petitioner to grant interest on refund under the provisions of Ss. 244/244A of the Act.

(2.) Petitioner had filed its return of income on 30/6/1984, for A. Y. 1984-85 relevant to previous year ended dtd. 31/3/1984, declaring loss of Rs. 1,79,830.00. The Assessment for A. Y. 1984-85 was completed under Sec. 143(3) of the Act and Assessment Order dtd. 23/3/1987 determining the total income at Rs. 4,83,658.00 was passed. The Assessing Officer (A.O.) also made an addition of Rs. 6,63,500.00 under Sec. 68 of the Act in respect of the amount of capital contributed by the five partners on the ground that it was not proved to be cash credit. The A.O. also initiated penalty proceedings under Sec. 271 (1)(c) of the Act and consequently, issued a notice of demand dtd. 23/3/1987, demanding a sum of Rs. 4,31,815.00 .

(3.) Being aggrieved by the Assessment Order dtd. 23/3/1987 passed by the A.O., Petitioner filed an Appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] on 21/4/1987. The Appeal was dismissed by an order dtd. 22/2/1989.