(1.) The petitioner which is a public limited company has approached this Court, in effect for a writ of mandamus directing the respondents to pay interest on the amount of Rs.49,40,923/ as provided under Section 244A of the Income Tax Act (hereinafter referred to as "the Act"). The petitioner has also prayed for quashing and setting aside the communication dated 18.7.1995 issued by the Central Board of Direct Taxes to the Chief Commissioner of Income Tax, Pune.
(2.) The facts in the present case are not in dispute. The petitioner is a steel manufacturing company. The petitioner when it was in the process of establishing an integrated steel plant at Bhandara entered into an agreement with M/s. Mannesmann Demag (MDH) Germany (hereinafter referred to as "the German company") on 8.11.1985 for transfer of technical knowhow. As per the said agreement, the petitioner company was required to make the payment of technical knowhow fee in three instalments of Rs.25,48,333/ DM, totalling to Rs.76,45,000/.
(3.) That the petitioner Company in pursuance to the said agreement deducted tax at source (TDS) and paid/deposited the same with respondent as detailed below : <p><JUDIMG>372439-1</JUDIMG>