| Case ID |
16b09423-6e8a-4bb6-a223-d143feb8bfbc |
| Body |
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| Case Number |
SPECIAL CIVIL APPLICATION No. 8976 OF 1995 |
| Decision Date |
Sep 23, 2008 |
| Hearing Date |
|
| Decision |
The Gujarat High Court upheld the provisions of sections 234A and 234B of the Income-tax Act, 1961, confirming that interest is chargeable for defaults in filing returns and in paying advance tax. The court ruled that both defaults are independent and the statutory provisions are not arbitrary or unreasonable. It was determined that once the tax is due, interest must be calculated separately for each default, and the provisions do not violate constitutional rights. The petitioner's claims were dismissed as the payments made beyond the financial year did not exempt them from interest liabilities under the relevant sections. |
| Summary |
In the case of Roshanlal S. Jain (AOP) vs. Deputy Commissioner of Income Tax, the Gujarat High Court addressed the constitutionality and application of sections 234A and 234B of the Income-tax Act, 1961. The petitioner challenged the imposition of interest for late filing of returns and non-payment of advance tax, arguing that these provisions were ultra vires and led to double taxation. The court clarified that interest under section 234A applies for delays in filing returns, while section 234B pertains to defaults in advance tax payments. The judgment emphasized that both liabilities are distinct and uphold the legislative intent of the tax code. The court reinforced that compliance with statutory requirements is crucial and that claims for exemptions based on payments made after the financial year do not negate the obligation to pay interest. This ruling affirms the integrity of tax laws and clarifies the responsibilities of taxpayers, thereby maintaining the balance between legislative intent and taxpayer obligations. |
| Court |
Gujarat High Court
|
| Entities Involved |
Not available
|
| Judges |
D.A. Mehta,
Bankim N. Mehta
|
| Lawyers |
J.P. Shah,
Manish R. Bhatt,
Ketan A. Dave
|
| Petitioners |
Roshanlal S. Jain (AOP)
|
| Respondents |
Deputy Commissioner of Income Tax
|
| Citations |
2009 SLD 2348,
(2009) 309 ITR 174
|
| Other Citations |
Arvind Boards & Paper Products Ltd. [1982] 137 ITR 635/9 Taxman 185 (Guj.),
Dr. Prannoy Roy v. CIT [2002] 254 ITR 755 / 121 Taxman 314 (Delhi)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
234A,
234B,
140
|