Bombay HC Upholds Rejection of Refund of Disputed Income Tax on ground of Non Disclosure of Proper Calculation of Income Tax [Read Order]

The Bombay High Court upheld the rejection of refund of disputed income tax on the ground of nondisclosure of proper calculations of income tax by the petitioner. 

Bombay Dyeing & Manufacturing Co. Ltd, the petitioner filed a writ petition challenging the validity of the orders passed by the Commissioner of Income Tax determining the amount of tax payable by the petitioner according to a declaration filed under the Kar Vivadh Samadhan Scheme (KVVS), 1998. 

Madhur Agrawal and Atul K. Jasani, the counsels for the petitioner contended that assuming such refund was to be deducted, the interest granted under section 244A of the Income Tax Act,1961 which formed a part of the said refund, could in no event had been reduced. 

Further submitted that the adjustment so made was not following the provisions of the KVSS and that the Commissioner was required to amend the certificate and issue a fresh certificate. 

Suresh Kumar, the counsel for the respondent contended that rejected the Petitioner’s rectification application and the refund granted according to the intimation made was to be deducted from the tax paid for arriving at the amount of net payment of tax and as the adjustment was following the KVSS, there was no merit in the rectification application. 

The Court observed that the fact that revenue refunded tax to the petitioner, and paid interest thereon because the Petitioner had not disclosed and calculated tax properly and the petitioner cannot take advantage of its wrong and claim that the interest which had been paid to it should not be reduced while computing the disputed tax. 

The two-member bench comprising Firdosh P.Pooniwalla and K.R. Shriram upheld the rejection of the refund claimed by the petitioner and dismissed the writ petition. 

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