| Case ID |
5148bf69-6d5d-4856-b7dc-fd0ab4aaca4f |
| Body |
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| Case Number |
SPECIAL CIVIL APPLICATION NO. 370 OF 1980 |
| Decision Date |
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| Hearing Date |
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| Decision |
The Gujarat High Court ruled in favor of Bardolia Textile Mills, determining that the interest under section 214(1) of the Income-tax Act would be payable on the excess advance tax even when the excess was only recognized in a revised assessment. The court emphasized that the interest should be computed up to the date of the revised assessment, not limited to the date of the original assessment. This decision clarifies the interpretation of 'regular assessment' as it relates to the determination of excess tax and the corresponding interest due to the taxpayer. The court directed the Income Tax Officer to pay interest on the refund amount in accordance with section 214(1) until the date of the revised assessment, thereby ensuring that taxpayers are compensated for the time their funds were held by the government without justification. |
| Summary |
In the landmark case of Bardolia Textile Mills v. Income Tax Officer, the Gujarat High Court addressed critical issues surrounding the payment of interest on excess advance tax under section 214(1) of the Income-tax Act, 1961. The case arose when Bardolia Textile Mills, having paid advance taxes for multiple assessment years, found that after a revised assessment, it had paid excess taxes. The core of the dispute hinged on whether interest on the excess amount would be calculated up to the date of the original assessment or the revised assessment. The court's decision favored the latter interpretation, emphasizing the need for fairness and proper compensation to taxpayers. This ruling not only clarified the legal standing on tax refunds but also reinforced the importance of timely adjustments in tax assessments. The case has significant implications for taxpayers dealing with excess payments and highlights the judiciary's role in interpreting tax laws to protect taxpayer rights. Keywords: Gujarat High Court, Bardolia Textile Mills, Income Tax Officer, advance tax, excess tax, interest on tax refund, Income-tax Act, legal interpretation, taxpayer rights. |
| Court |
Gujarat High Court
|
| Entities Involved |
Not available
|
| Judges |
P.S. Poti, C.J.,
G.T. Nanavati,
I.C. Bhatt
|
| Lawyers |
J.P. Shah for the Petitioner,
B.R. Shah for the Respondent,
K.C. Patel for the Intervener
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| Petitioners |
Bardolia Textile Mills
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| Respondents |
Income Tax Officer
|
| Citations |
1985 SLD 881 = (1985) 151 ITR 389
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| Other Citations |
Kooka Sidhwa & Co. v. CIT [1964] 54 ITR 54 (Cal.),
Gopi Lal v. CIT [1967] 65 ITR 477 (Punj.),
Dwarka Nath v. ITO [1965] 57 ITR 349 (SC),
Chloride India Ltd. v. CIT [1977] 106 ITR 38 (Cal.),
General Fibres Dealers Ltd. v. ITO [1979] 116 ITR 40 (Cal.),
Triplicane Urban Cooperative Society Ltd. v. CIT [1980] 126 ITR 125 (Mad.),
Rayon Traders (P.) Ltd. v. ITO [1980] 126 ITR 135 (Mad.),
Sarangpur Cotton Mfg. Co. Ltd. v. CIT [1957] 31 ITR 698 (Bom.),
Sir Shadilal Sugar & General Mills Ltd. v. Union of India [1972] 85 ITR 363 (All.),
Lala Laxmipat Singhania v. CIT [1977] 110 ITR 289 (All.),
N. Devaki Amma v. ITO [1980] 122 ITR 272 (Ker.),
National Agricultural Co-operative Marketing Federation of India Ltd. v. Union of India [1981] 130 ITR 928 (Delhi),
CIT v. Ambala Electric Supply Co. Ltd. [1983] 142 ITR 872 (Punj. & Har.),
Trustees of H.E.H. Nizam's Religious Endowment Trust v. ITO [1981] 131 ITR 239 (AP),
CIT v. Carona Sahu Co. Ltd. [1984] 38 CTR (Bom.) 219 (FB)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
214(1),
240,
244(1A)
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