TMI Blog1996 (9) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... he same in the market. The method of accounting of the said company was mercantile and the accounting period of this was the financial year. This company was a regular income-tax assessee under the Income-tax Act, 1961, and was being assessed by the Income-tax Department, Sector-10, Calcutta, for all the relevant assessment years including the assessment year 1993-94. It is claimed that in computing the taxable income, Tea Estates India Limited was entitled to benefits under the provisions of section 32AB and section 33AB of the Income-tax Act, apart from other benefits and reliefs allowable thereunder. It is further claimed that in the assessment years 1987-88, 1988-89, 1989-90 and 1990-91, Tea Estates India Limited made deposits in the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Limited and Doom Dooma Tea Limited stood vested in Brooke Bond India Limited and that the said Tea Estates India Limited went into liquidation. Subsequently, with effect from March 7, 1994, even the aforesaid Brooke Bond India Limited got merged with Lipton India Limited and is now known as Brooke Bond Lipton India Limited, of which Tea Estates India Limited is one of the divisions. On May 2, 1996, the Commissioner of Income-tax, West Bengal-II, respondent No. 1, in this appeal issued a notice to Tea Estates India Limited, Brooke House No. 1, Post Office Road, Coonoor, under section 263 of the Income-tax Act calling upon the said Tea Estates India Limited to explain and submit as to why the said Commissioner of Income-tax may not exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount in the total income. Secondly, it appears that the deductions under section 32AB of the Income-tax Act have been allowed to you for the assessment years 1987-88, 1988-89 and 1989-90 as below : Assessment years Amount (Rs.) 1987-88 1,03,00,000 1988-89 97,80,740 1989-90 1,22,11,025 -------------------- 3,22,91,765 -------------------- Owing to the transfer of the assets, the provisions of section 32AB applied and an amount totalling Rs. 3,22,91,765 is assessable in the assessment for the assessment year 1993-94. The Assessing Officer, however, omitted to bring this to tax. For the reasons relevant for the preceding paragraphs, I consider the order of assessment for the assessment year 1993-94 erroneous and as such pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication under article 226 of the Constitution of India for the issuance of a writ of certiorari for quashing and setting aside the impugned notice dated May 2, 1996, by respondent No. 1 and all proceedings arising thereunder and for a writ of mandamus consequently commanding the respondents to act according to law and to cancel and withdraw the aforesaid notice dated May 2, 1996. Various other consequential and ancillary reliefs were also claimed in this said writ application filed by the appellant. After a detailed consideration, the learned single judge vide the judgment under appeal passed on July 16, 1996, dismissed the writ application but issued the following two directions to respondent No. 1 : " (a) The writ petitioner may file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not been disputed by the appellant. Only the liability has been disputed. In fact the case of the appellant in the present appeal is on a weaker footing than the case of Indo Asahi Glass Co. [1996] 222 ITR 534 because in that case, the appellant had not submitted any reply to the impugned show-cause notice and had straight away come to the High Court seeking its quashing by issuance of a writ of certiorari. As is seen in the present appeal, the appellant initially sought time from the Commissioner of Income-tax to submit a reply to the show cause notice, on the ground that it needed to collect information and data. After time was granted, it chose to send a detailed reply to the show cause notice and, despite having submitted such a detai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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