D.J. Works v. Deputy CIT

195 ITR 227High Court1992#8270 most cited

What is D.J. Works v. Deputy CIT authority for?

If interest on a tax refund is wrongfully retained by the revenue, interest on that retained interest is payable. This is true even if there is no specific provision in the Income Tax Act for payment of interest on interest.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2006 to 2023.

Also referred to as

D.J. Works v. Deputy CIT · 195 ITR 227 · interest on interest · wrongful retention of refund · compensation for delayed payment · statutory interest

Judgments citing D.J. Works v. Deputy CIT

Idbi Bank Ltd, Mumbai vs. ACIT, Ltu Circle-1, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 715/MUM/2023[1994-95]Status: DisposedITAT Mumbai07 Aug 2023AY 1994-95

Bench: Shri Kuldip Singh & Shri Gagan Goyal & Idbi Bank Limited, 22Nd Floor, Idbi Tower, Wtc Complex, Cuffe Parade, Mumbai-400 005 ...... Appellant Vs. Acit/Dcit-Ltu, 29Th Floor, Centre No.1, World Trade Centre, Cuffe Parade, Mumbai-400 005 Pan – Aabci8842G ..... Respondent

For Appellant: Shri C. Naresh, Ld. ARFor Respondent: Shri K. C. Selvamani, CIT-DR
Section 143(3)Section 154Section 154(7)Section 244ASection 250

…he same cannot be construed as interest on interest. Based on this distinction, the SC in Gujarat Fluoro(supra)held that Section 244A of the Act envisages only statutory interest and not interest on such statutory interest. 7. In D.J. Works v. Dy. CIT [1992] 195 ITR 227/64 Taxman 91 (Guj.) and followed in Chimanlal S. Patel v. CIT [1994] 77 Taxman 277/ 210 ITR 419 (Guj.), the High Court held that though there is no specific provision for payment of interest on the interest amount refundable and which has been retained, once the interest amount becomes due, it takes the same colour as the excess amount of tax whi…

M/S Elgi Ultra Industries Limited, Coimbatore vs. DCIT, Coimbatore

In the result, appeal filed by the assessee is dismissed

ITA 2023/CHNY/2019[2008-09]Status: DisposedITAT Chennai05 Jan 2022AY 2008-09

Bench: Shri V.Durga Rao & Shri G.Manjunatha

For Appellant: Ms. R.Anita, Addl.CITFor Respondent: 23.12.2021
Section 143(1)Section 143(3)Section 244A

…e: (copies attached) a. Sandvik Asia Ltd. v. CIT [2006] 280 ITR 643 (SC) and b. CIT v. Narendra Doshi [20021 254 ITR .06(SC), in which the H’ble Apex Court has approved the decisions of the H’ble Gujarat High Court in the cases of: i) D.J. Works v. DCIT [1992)195 ITR 227 ii) Chimanlal S. Patel v. CIT [1994] 210 ITR 419 4. The Ld. CIT (A) is bound in law to follow the decisions of the Apex Court on facts which are just the same as that of the case of the Assessee and has erred in just mentioning, without reasoning out, that the decision of the Hon'ble Supreme Court is on different set of facts.” 3. Brief facts of…

Kotak Mahindra Bank Ltd. (As Successor in Business of Erstwhile Ing Vysya Bank Ltd.), Mumbai vs. A.C.I.T. Cir. - 2(3)(2), Mumbai

In the result, all the appeals of the assessee are allowed

ITA 728/MUM/2018[1994-95]Status: DisposedITAT Mumbai27 Oct 2021AY 1994-95
Section 154Section 244ASection 245CSection 245D(1)

…the said delay by the department. While taking M/s. Kotak Mahindra Bank Limited (As successor in business to erstwhile ING Vysya Bank Ltd.,) this view, the Supreme Court referred to the judgment of the Gujarat High Court in the case of D.J. Works v. Dy. CIT [195 ITR 227] wherein the High Court had held that though there is no specific provision for payment of interest on interest, but if interest on the refund is wrongfully retained, interest on interest would be payable. The Court further held that even assuming that there was no provision in the Act for payment of compensation, on general principles, compensat…

Commissioner of Income Tax vs. M/S. Syndicate Bank

In the result, we do not find any merit in this appeal, the

ITA/582/2013HC Karnataka07 Oct 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 154Section 243(1)Section 244(1)Section 246ASection 260Section 260A

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF OCTOBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.582 OF 2013 BETWEEN: 1. COMMISSIONER OF INCOME TAX MANGALORE-575001. 2. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, UDUPI-576101. ... APPELLANTS (BY Mr. E.I. SANMATHI, ADV.,) AND: M/S. SYNDICATE BANK H.O. MANIPAL-576104. ... RESPONDENT (BY Mr. T. SURYANARAYANA, ADV.,) - - - THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 12.07.2013 PASSED…

M/S Hope Textiles Ltd., Indore vs. The ACIT 5(1), Indore

In the result, all the appeals filed by the assessee are dismissed

ITA 698/IND/2016[1975-76]Status: DisposedITAT Indore19 Nov 2019AY 1975-76

Bench: Shri Kul Bharat & Shri Manish Borad

Section 119(2)(c)Section 154Section 244Section 40A(7)

…the judgements which laid down that interest was payable on the excess amount paid towards income-tax. The Tribunal, whose decision the High Court affirmed, had relied upon the decision of the Gujarat High Court in the case of D.J. Works Vs. Deputy CIT (1992) 195 ITR 227, which had been followed by the same High Court in Chimanlal S. Patel V. CIT (1994) 210 ITR 419. These decisions hold that the Revenue is liable to pay interest on the amount of interest which it should have paid to the assessee but has unjustifiably failed to do. The Revenue has not challenged the correctness of the two decisions of the Gujarat…

M/S Hope Textiles Ltd., Indore vs. The ACIT 5(1), Indore

In the result, all the appeals filed by the assessee are dismissed

ITA 697/IND/2016[1974-75]Status: DisposedITAT Indore19 Nov 2019AY 1974-75

Bench: Shri Kul Bharat & Shri Manish Borad

Section 119(2)(c)Section 154Section 244Section 40A(7)

…the judgements which laid down that interest was payable on the excess amount paid towards income-tax. The Tribunal, whose decision the High Court affirmed, had relied upon the decision of the Gujarat High Court in the case of D.J. Works Vs. Deputy CIT (1992) 195 ITR 227, which had been followed by the same High Court in Chimanlal S. Patel V. CIT (1994) 210 ITR 419. These decisions hold that the Revenue is liable to pay interest on the amount of interest which it should have paid to the assessee but has unjustifiably failed to do. The Revenue has not challenged the correctness of the two decisions of the Gujarat…

M/S Hope Textiles Ltd., Indore vs. The ACIT 5(1), Indore

In the result, all the appeals filed by the assessee are dismissed

ITA 696/IND/2016[1973-74]Status: DisposedITAT Indore19 Nov 2019AY 1973-74

Bench: Shri Kul Bharat & Shri Manish Borad

Section 119(2)(c)Section 154Section 244Section 40A(7)

…the judgements which laid down that interest was payable on the excess amount paid towards income-tax. The Tribunal, whose decision the High Court affirmed, had relied upon the decision of the Gujarat High Court in the case of D.J. Works Vs. Deputy CIT (1992) 195 ITR 227, which had been followed by the same High Court in Chimanlal S. Patel V. CIT (1994) 210 ITR 419. These decisions hold that the Revenue is liable to pay interest on the amount of interest which it should have paid to the assessee but has unjustifiably failed to do. The Revenue has not challenged the correctness of the two decisions of the Gujarat…

Quality Vmg Bus Depot Project, Mumbai vs. DCIT (TDS) 2(2)

In the result, assessee’s appeal is partly allowed

ITA 4193/MUM/2014[2005-06]Status: DisposedITAT Mumbai16 Sept 2016AY 2005-06

Bench: Shri Saktijit Dey & Shri N.K. Pradhan

For Appellant: Shri K.B. DesaiFor Respondent: Shri Satya Pal Kumar
Section 154Section 244A

…not justified in rejecting the additional ground as all facts relating to such ground are available on record. Learned Authorised Representative also relied upon the following decisions in support of its claim of interest on interest. i) D.J. Works v/s DCIT, 195 ITR 227; and ii) CIT v/s Narendra Gosi, 254 ITR 606. 5. The learned Departmental Representative on the other hand relied upon the observations of the learned Commissioner (Appeals). 6. We have considered the submissions of the parties and perused the material available on record in the light of the decisions relied upon. As far as the factual aspect is…

M.G.F.India Ltd vs. Commissioner of Income Tax

ITA - 31 / 2009HC Delhi30 Oct 2009
Section 154

…rule of law." 12. Other principle which is laid down by the Supreme Court is that interest on interest is payable even if there was no specific provision in the Act, as is clear from the following observations:- "The Gujarat High Court in D.J. Works, (1992) 195 ITR 227 and Chimanlal S. Patel's case (1994) 210 ITR 419 had taken the view that even proceeded on the basis that there was no specific provision for payment of interest on amount of interest which had been wrongfully retained, the Act itself recognized in principle the liability of the Department to pay interest where excess tax was retained and the cou…

M.G.F.India Ltd vs. Commissioner Ofincome Tax

ITA - 33 / 2009HC Delhi30 Oct 2009
Section 143(1)(a)Section 254A

…rule of law." 12. Other principle which is laid down by the Supreme Court is that interest on interest is payable even if there was no specific provision in the Act, as is clear from the following observations:- "The Gujarat High Court in D.J. Works, (1992) 195 ITR 227 and Chimanlal S. Patel's case (1994) 210 ITR 419 had taken the view that even proceeded on the basis that there was no specific provision for payment of interest on amount of interest which had been wrongfully retained, the Act itself recognized in principle the liability of the Department to pay interest where excess tax was retained and the cou…

M.G.F.India Ld vs. Commissioner of Income Tax

ITA - 37 / 2009HC Delhi30 Oct 2009

…rule of law." 12. Other principle which is laid down by the Supreme Court is that interest on interest is payable even if there was no specific provision in the Act, as is clear from the following observations:- "The Gujarat High Court in D.J. Works, (1992) 195 ITR 227 and Chimanial S. Patel's case (1994) 210 ITR 419 had taken the view that even proceeded on the basis that there was no specific provision for payment of interest on amount of interest which had been wrongfully retained, the Act itself recognized in principle the liability of the Department to pay interest where excess tax was retained and the cou…

The Motor & General Finance Ltd. etc. etc vs. Commissioner of Income Tax-VI, New Delhi

ITA-35/2009HC Delhi30 Oct 2009
Section 143(1)(a)Section 143(3)Section 154Section 254A

…law.” 12. Other principle which is laid down by the Supreme Court is that interest on interest is payable even if there was no specific provision in the Act, as is clear from the following observations :- “The Gujarat High Court in D.J. Works, (1992) 195 ITR 227 and Chimanlal S. Patel‟s case (1994) 210 ITR 419 had taken the view that even proceeded on the basis that there was no specific provision for payment of interest on amount of interest which had been wrongfully retained, the Act itself recognized in principle the liability of the Department to pay interest where excess tax was retained and t…

Sandvik Asia Ltd vs. Commnr.of Income Tax-I, Pune

In the result, the appeals stand allowed

C.A. No.-001337-001340 - 2005Supreme Court27 Jan 2006
For Respondent: Commissioner of Income Tax-I, Pune & Ors
Section 214Section 264

…e pleadings, annexures marked in these appeals and the documents relied on by both the parties in the High Court and of this court and also cited the following decisions in support of his contention. 1. D.J. Works vs. Deputy Commissioner of Income-Tax, 195 ITR 227 2. Commissioner of Income-Tax vs. Narendra Doshi, 254 ITR 606 3. Berger Paints India Ltd. Vs. Commissioner of Income-Tax, 266 ITR 99 4. Union of India & Ors. Vs. Kaumudini Narayan Dalal & Anr., 249 ITR 219 5. Commissioner of Income-Tax vs. Shivsagar Estate, 257 ITR 59 6. Chimanlal S. Patel vs. Commissioner of Income-Tax &…

D.J. Works v. Deputy CIT (195 ITR 227) — Cited in 13 Judgments | BharatTax