JUDGMENT :

K.R. Shriram, J.

Petitioner is a Registered Partnership firm and was carrying on business, inter alia, of ship breaking. Petitioner is seeking to challenge an order dated 30th April 2004 passed under Section 264 of the Income Tax Act, 1961 (the “Act”) by Respondent No.1, rejecting application of Petitioner to grant interest on refund under the provisions of Sections 244/244A of the Act.

2. Petitioner had filed its return of income on 30th June 1984, for A. Y. 1984-85 relevant to previous year ended dated 31st March 1984, declaring loss of Rs.1,79,830/-. The Assessment for A. Y. 1984-85 was completed under Section 143(3) of the Act and Assessment Order dated 23rd March 1987 determining the total income at Rs.4,83,658/- was passed. The Assessing Officer (A.O.) also made an addition of Rs.6,63,500/- under Section 68 of the Act in respect of the amount of capital contributed by the five partners on the ground that it was not proved to be cash credit. The A.O. also initiated penalty proceedings under Section 271 (1)(c) of the Act and consequently, issued a notice of demand d