The Supreme Court of India held that tax refunds are payable only when the burden has not been passed on, warning courts against creating mechanisms beyond statutory limits. Referring to Section 54, it directed amounts to the Consumer Fund.
The Supreme Court delivered a split verdict on the Revenue’s appeal against a Bombay HC ruling in a high-stakes tax dispute involving foreign drilling companies. Conflicting views on Sections 144C and 153 of the Income Tax Act now push the matter to a larger bench.
