( 1 ) ASSESSEE, a Company, has filed this petition under Article 226 of the Constitution of India for a writ of certiorari or any other appropriate writ, order or direction for quashing the intimation/order Annexure d dated 18. 12. 1995 under Section 143 (l) (a) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). It has also prayed for quashing the demand of Rs. 1,30,83,741/ -.

( 2 ) THE short facts leading to the present proceedings are as under :

( 3 ) ON 12-9-1994 the assessee submitted a return of loss of Rs. 1,74,78,530/- for the assessment year 1993-94 as per the computation of income and depreciation chart annexed to the petition at Annexure A. The assessee claimed depreciation of Rs. 1,74,78,526/ -. Manufacturing activities started on March 24, 1993, i. e. , during the accounting year ending on 31. 3. 1993 (the assessment year 1993-94 ). It was specifically pointed out that "the amount of interest received during the public issue of Rs. 1,07,85,590/- is not to be considered as income and has been given set off against the interest outgoings included under preoperative expenditure" in view of several decisions including that of the Apex Court.

(