Income Tax illegally levied must be refunded: Bombay High Court

Grasim Industries Ltd Vs ACIT (Bombay High Court) Bombay High Court held that subject to doctrine of unjust enrichment, the taxes illegally levied must be refunded. Facts- Petitioner had set up a Gas-based Sponge Iron Plant in India for which it entered into a Foreign Technical Collaboration Agreement with one M/s. Davy Mckee Corporation (DAVY) and another party. Under the agreement, DAVY agreed to render to Petitioner outside India certain engineering and other related services in relation to the project. Petitioner also entered into another agreement (Supervisory Agreement) with DAVY to prov...