(1.) THIS is a petition for quashing of the orders dt. 23rd April, 1999, and 6th Dec., 1999, passed by the ITO, Ward 1, Gurgaon (respondent No. 3) and the CIT, Rohtak (respondent No. 2), declining the petitioner's prayer for payment of interest in accordance with S. 244A(2) of the IT Act, 1961 (for short, "the Act"). The petitioner has also prayed for issuance of a writ in the nature of mandamus directing the respondents to pay interest on the amount of tax paid by it in relation to the asst. yr. 1996 97.
(2.) THE facts necessary for deciding the issue raised in the petition are that by an order dt. 2nd Oct., 1998, passed under S. 143(3) of the Act, respondent No. 3 created a demand of Rs. 26,81,17,875 against the petitioner. That order was upheld by the CIT(A) and the Tribunal. On 9th Feb., 1999, the petitioner moved an application under S. 10(23C)(iv) of the Act for grant of exemption. Vide notification dt. 6th April, 1999 the CBDT accepted its prayer. Thereafter, the petitioner filed application dt. 9th April, 1999, for refund of the amount of tax deposited in pursuance of the order passed by respondent No. 3. Simultaneously, it claimed interest in terms of s. 244A(2). By an order dt. 23rd April, 1999, respondent No. 3 partly allowed the said application and ordered refund of the tax, but declined to award interest by observing that the rectification application was being disposed of within a fortnight of its filing. A similar application filed by the petitioner was rejected by respondent No. 2, vide his order dt. 6th Dec., 1999.
(3.) IN the written statement filed on behalf of the respondents, it has been averred that the petitioner's prayer for award of interest was rightly declined because the application for refund filed on its behalf was disposed of within a period of 15 days.