HIGH COURT OF MADRAS
Super Spinning Mills Ltd.
Versus
Assistant Commissioner of Income-tax, Co. Circle-I(2), Coimbatore
W.P. No. 29285 of 2012
JANUARY 8, 2013
ORDER
1. The subject matter of the writ petition is the letter dated 15.10.2012 issued by the Assistant Commissioner of Income Tax, Company Circle I(2), Coimbatore, which reads as follows:-
“ACIT/CC-I(2)/Cbe/AADCS0672G Dated: 15.10.2012
To
The Principal Officer
M/s Super Spinning Mills Ltd.,
No.737-D, Elgi Towers
Green Fields, Puliyakulam
Coimbatore 641 045
Sir,
Sub: Payment of tax Arrear demand in the case of M/s Super Spinning Mills Ltd., Coimbatore-reg.
Ref: Your letter dated 15.10.2012
With reference to above, the latest arrear demand position of your company is 2286.72 lakhs. You are directed to pay the entire arrear demand on or before 22.10.2012 to avoid coercive action under Income Tax Act.
Yours faithfully,
Sd/-
Assistant Commissioner of Income Tax Company Circle I(2), Coimbatore”
2. The petitioner’s case has a chequered history and deals with several assessment years under the Income Tax Act. When the writ petition was filed, details relating to several assessment periods were not filed as annexures to the writ petition. Subsequently, pursuant to the orders of this Court dated 27.11.2012, the assessment orders relevant to the case as well as assessment orders not relevant to the case were filed by way of a common additional typed-set of papers and were perused.
3. The facts of the case, in brief, are as follows. The petitioner is engaged in the manufacture of cotton yarn and allied products. The issue for consideration is the petitioner’s claim on the expenditure incurred for replacement of machinery in the spinning mills as revenue expenditure was disallowed by the assessing Income Tax Officer. The assessment periods together with the corresponding demand which are relevant to the present case are as below:-
