HIGH COURT OF ALLAHABAD
Lohia Starlinger Ltd.
v/s.
Commissioner of Income-tax
CIVIL MISC. WRIT PETITION TAX NO. 676 OF 2000
JULY 6, 2012
JUDGMENT
1. M/s Lohia Starlinger Limited (the petitioner) is a public limited company, incorporated under the Companies Act, 1956. On 1.3.1993 M/s Lohia Machinery Manufacturers Limited, a loss making company, amalgamated with the petitioner-company, carrying a total loss of Rs. 3,53,99,401/-. The original assessment under Section 143 (3) of the Income-tax Act, 1961 (the Act) for the assessment year 1993-94, was completed by Assistant Commissioner of Income-tax, Central Circle-5, Kanpur on a total income of Rs. 3,70,29,530/- as against the returned income at Nil. The claim of set off of loss of M/s Lohia Machinery Manufacturers Limited (the amalgamated company), was not allowed for want of requisite certificate under Section 72A (2) (ii) of the Act by the specified authority, during the pendency of the assessment.
2. The petitioner-company filed an appeal before the Commissioner of Income-tax (Appeals). The Appellate Authority allowed some of the reliefs. The petitioner further filed an appeal in the Income Tax Appellate Tribunal, which was pending, when this writ petition was filed.
3. The petitioner-company preferred an application under Section 119 (2) (b) of the Act to the Central Board of Direct Taxes (CBDT), New Delhi for condonation of delay in filing the certificate under Section 72-A(2)(ii). The CBDT, by its order dated 31.3.1998, condoned the delay in filing the certificate.
4. The Commissioner of Income-tax, Central Circle-5, Kanpur passed an order on 22.7.1998, giving effect to the order of CBDT dated 31.3.1998, and made computation of income as follows:-
“Consequently to give effect C.B.D.T’s New Delhi order dated 31.3.98 the income of the assessee is computed as under:-
