Bombay HC Upholds Section 234D Interest on Pre-1 June 2003 Excess Refunds

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 ...