TaxTMI 
TaxTMI 
2000 (11) TMI 123
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.... respondents from realising interest under those sections. It has further been prayed that the petitioners Appeal No. nil of 1995, be disposed of within a reasonable time. Heard Sri V. B. Upadhyaya and Sri R. N. Singh, learned counsel for the petitioner, as well as learned counsel for the Department. The petitioner is a company registered under the Indian Companies Act. It is a non-banking finance company controlled by the Reserve Bank of India. Its business is akin to that of a commercial bank and it accepts deposits, and invests the funds in hire purchase business. For the assessment year 1989-90, it filed a return showing loss of Rs. 62,510 including set-off of earlier losses of Rs. 49,113. The assessment for that year was complete....
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....The Assessing Officer then issued demand notice under section 156 along with interest under section 220(2). The details of the same are given in paragraph 9 of the petition. A true copy of the demand notice dated March 30, 1995, is annexed as annexure 4 to the petition. The assessee-company filed an appeal against the order of the Commissioner of Income-tax (Appeals) dated March 15, 1995, before the Tribunal vide annexure 5 to the petition and this appeal is still pending before the Tribunal at New Delhi. The assessee-company also moved an application under section 154 before the Assessing Officer on December 22, 1997, for rectification of the mistake, particularly in respect of the interest on advance tax under sections 234A and 234B an....
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....ear 1990-91, and the return submitted for the assessment year 1989-90 showing loss was accepted by the Assessing Officer. In paragraph 24 of the petition it is alleged that the Assessing Officer wrongly rejected the petitioner's application dated December 22, 1997. In paragraph 26 of the petition it is alleged that the Assessing Officer while passing the order dated March 30, 1995, had not passed any specific order regarding levy of interest under sections 234A and 234B and thus interest cannot be levied through notice of demand under section 156. The Assessing Officer in his order dated March 30, 1995, only ordered in the last paragraph "revised accordingly. Issue fresh challan after taking into account the payment made so far. Also ....
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....er sections 234A and 234B is not appealable and hence it can only be challenged in writ jurisdiction in this court. A counter affidavit has been filed. In paragraph 4 of the same it is admitted that the assessment for the year 1989-90 was completed at a net loss of Rs. 7,133. In paragraph 5 of the same it is alleged that the return for the assessment year 1990-91 was belated. In paragraph 10 of the same it is stated that rectification under section 154 was made on September 7, 1998, as there was a mistake while revising the assessment. In paragaph 13 it is stated that for the assessment year 1990-91, the assessee filed a loss return but his assessment was made on a total income of Rs. 6,74,930, the details of which have been given ....