CIL SECURITIES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner filed this writ petition to declare that the petitioner is entitled to the benefit of the Karvivad Samadhan Scheme - 1998 (for short 'the Scheme') in respect of interest tax assessments for the assessment years 1994-95 and 1995-96 and consequently to set aside the order dated 10-02-1998 of Commissioner of Income-tax.

(2.) The Commissioner of Income-tax inthe said order informed the petitioner that the declaration filed by him is lodged as there are no tax arrears remaining unpaid on the date of declaration as required under Section 87(m) of Finance (No.2) Act, 1998.

(3.) The petitioner-Company is carrying on business of stock broking, merchant banking, registrars and share transfer agents and investment banking. The petitioner-Company was contending that it was not liable to interest tax, and therefore, according to the petitioner, no return of income were filed for the assessment years 1994-95 and 1995-96. But, the Assessing Officer held that the Interest Tax Act was applicable, and accordingly, assessments were completed vide his order dated 19-03-1998 assessing the total amounts payable for 1994-95 as Rs.93,032/- and 1995-96 as Rs.51,458/-. The Assessing Officer simultaneously initiated penal proceedings under Section 13 of the Interest Tax Act. Aggrieved against the assessment orders, the petitioner filed appeals before the Commissioner of Income-tax (Appeals) and the said appeals are currently pending.