CIT Vs Patel Engineering Ltd (Bombay High Court)
The Bombay High Court allowed the Revenue’s appeal and held that interest under Section 234D of the Income Tax Act on excess income tax refunds applies even to refunds issued before June 1, 2003. The only substantial question before the Court was whether Section 234D had retrospective application to refunds granted prior to its introduction. During the hearing, the assessee acknowledged that the issue had already been decided by the Bombay High Court in an earlier judgment, which had ruled in favour of the Revenue. Agreeing that the issue was covered by the previous decision, the Court held that no fresh adjudication was required. Accordingly, it answered the substantial question of law in favour of the Revenue, set aside the Income Tax Appellate Tribunal’s order for Assessment Year 2002–03, allowed the appeal, and made no order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
By order dated 18th March, 2026, the following substantial questions of law had been framed to be urged in this Income Tax Appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961, assailing the judgment and order dated 26th September, 2008 passed by the learned Income Tax Appellate Tribunal, ‘H’ within Mumbai Bench in ITA No. 4182 and CO 361/Mum/2006.
