Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2(7) 5 and 26C 4 1974 : Sections 2(5) Interest Tax Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Interest Tax Act, 1974 : Sections 2(5), 2(7), 4, 5 and 26C-Imposition of tax on total amount of interest received by Scheduled Banks/Credit Institutions on loans and advances-Grossing up and rounding the interest rate to 0.25% by banks by applying section 26C-legality of-Held: increase in rate of interest in terms of Section 26C, has a direct nexus with the statutory impost which must be definite-Hence, the purported demand from the borrower for a higher amount of tax .and consequently a higher amount of interest by way of rounding up was wholly illegal and without jurisdiction-Banking Regulation Act, 1949- Section 35-A-Constitution of India, 1950-Article 265 read with Article 366(28)-Interpretation of Statutes.Section 26C-Grossing up and rounding the rate of interest by banks-Borrowers deprived of huge amounts-Banks unjustly enriched themselves-Principle· of de minimis-Applicability of-Held: When unjust enrichment takes place, doctrine of de minimis should not be applied in equity or otherwise-Doctrines.Public interest litigation:Locus standi to maintain-Rule of-Discussed-On facts, grossing up and rounding the rate of interest by banks and as such borrowers had to pay higher amount of interest-Writ petition by firm of Chartered Accountant-Locus of-Held: Petitioner had locus to maintain public interest litigation-- Constitution of India, 1950-Articles 32 and 226. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2004 INSC 275 |
Petitioner | Indian Banks' Association, Bombay And Ors |
Respondent | M/s. Devkala Consultancy Service And Ors |
SCR | [2004] Supp. (1) S.C.R. 225 |
Judgement Date | 2004-04-16 |
Case Number | 4655 |
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