SATISH CHANDRA - (1.) The U.P. State Agro Industrial Corporation has come to this court under article 226 of the Constitution praying that the notice issued by the Income -tax Officer on March 20, 1974, be quashed and he be restrained from enforcing it.
(2.) THE authorised share capital of the petitioner -company is Rs. 5 crores. It is a Corporation in the public sector. 50% of its shares are owned by the President of India and 50% by the Governor of U.P. It carries on the business of manufacture and sale of agricultural implements, fertiliser, etc. On May 22, 1973, the Income -tax Officer, Lucknow, served upon the petitioner a notice under section 210 of the Income -tax Act, 1961, requiring the petitioner to pay a sum of Rs. 25,14,616 as advance tax for the assessment year 1974 -75. The petitioner estimated its current income for the assessment year 1974 -75 at Rs. 35,00,000 of which the payable amount of advance tax came to Rs. 20,21,250. The petitioner sent its return of current income to the Income -tax Officer on December 17, 1973, and paid a sum of Rs. 8,38,206 each on December 14, 1973, and December 15, 1973, respectively. According to it, it had to pay only a sum of Rs. 3,44,838 more before March 15, 1974. It appears that this return of estimate of current income was sent by the petitioner after receipt of a revised demand notice of advance tax dated December 11, 1973, under which the petitioner was required to pay Rs. 30,76,844 as advance tax for the assessment year 1974 -75. We gather that this second notice was based upon the return of income filed by the petitioner for the assessment year 1973 -74. On February 14, 1974, the Income -tax Officer issued another notice under section 210 of the Act intimating the petitioner that it had to pay an advance tax for the assessment year 1974 -75 in the sum of Rs. 34,91,913 and stating that the petitioner had to pay the balance sum of Rs. 18,15,501 before the March 15, 1974.
(3.) THE petitioner on March 15, 1974, submitted before the Income -tax Officer another estimate of its current income. In this estimate also the current income was shown at Rs. 35,00,000 and it was mentioned that the assessee was liable to pay advance tax in the sum of Rs. 20,21,250 only. This estimate was in terms identical with the estimate submitted by the assessee on December 17, 1973.;