| Case ID |
2065db5a-4dc6-41b1-a3f9-ea6bed467e7f |
| Body |
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| Case Number |
Special Civil Application No. 6656 of 1987 |
| Decision Date |
Jan 28, 1992 |
| Hearing Date |
|
| Decision |
The Gujarat High Court ruled that the entire amount of income-tax collected as advance tax or through provisional assessment cannot be refunded if the regular assessment becomes time-barred or annulled. The court emphasized that the liability to pay tax arises upon the enactment of rates by a Central Act, and the tax paid is deemed valid unless specifically proven otherwise. The court also stated that the provisions of the Income Tax Act ensure that the tax collected is lawful, and any claims for refunds must adhere to the statutory guidelines laid out in sections 237 and 239. The court concluded that the petitioners were not entitled to a refund of the entire tax paid, as the amounts were collected according to the law, and no excess tax was determined to be refundable under the existing provisions. |
| Summary |
This case revolves around the interpretation of the Income Tax Act, 1961, particularly concerning the provisions for provisional assessments and the consequent rights of taxpayers regarding refunds. The Gujarat High Court examined multiple special civil applications filed by Saurashtra Cement and Chemical Industries Ltd and others, challenging the legality of tax collections made prior to regular assessments. The judgment clarified that tax liabilities are established upon legislative enactments, and the methods of tax collection, including advance tax and self-assessment, are lawful under the Income Tax Act. The court affirmed that the absence of a timely regular assessment does not automatically entitle taxpayers to refunds of amounts that were properly collected as tax. This case highlights the importance of understanding the statutory framework governing tax liabilities and the processes involved in tax assessment and collection. Keywords relevant to this case include 'Income Tax Act', 'provisional assessment', 'tax refund', 'Gujarat High Court', and 'tax liabilities'. |
| Court |
Gujarat High Court
|
| Entities Involved |
|
| Judges |
R.C. Mankad ACTG. C.J.,
S.B. Majmudar,
R.K. Abichandani
|
| Lawyers |
J.M. Thakore, Advocate-General,
K.H. Kaji,
J.P. Shah,
K.C. Patel,
Mihir J. Thakore instructed by M.R. Bhatt for R.P. Bhatt & Co.
|
| Petitioners |
Saurashtra Cement and Chemical Industries Ltd
|
| Respondents |
Income Tax Officer
|
| Citations |
1993 SLD 52,
1993 PTD 392,
(1993) 67 TAX 74
|
| Other Citations |
Deep Chand Jan v. I.T.O. (1984) 145 ITR 676,
Assistant Collector of Central Excise v. National Tobacco Co. of India Ltd. AIR 1972 SC 2563,
Baroda Board and Paper Mills Ltd. v. ITO (1976) 102 ITR 153 (Guj.),
Boga (RA.) v. AAC of I.T. (1977) 110 ITR 1 (P&H),
Burmah Shell Refineries Ltd. v. G.B. Chand, ITO (1966) 61 ITR 493 (Bom.),
CIT v. Harprasad & Co. P. Ltd. (1975) 99 ITR 118 (SC),
CIT v. Nagri Mills Ltd. (1987) 166 ITR 292 (Guj),
CTT v. Srinivasa Setty (B.C.) (1981) 128 ITR 294 (SC),
Dwarka Dass (L.) v. ITO (1956) 29 ITR 60 (All.)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
4,
139,
140A,
143,
199,
219,
237,
240
|