20 March 2009
a company inreased its income by way of fraud, to take a loan from bank. two year after the mal practice has been discovered by income tax department.
can the company now make a claim to refund tax of the inflated income previously paid.
21 March 2009
If reassessment proceding is taken against company and new tax liability is calculated by Tax Dept. then you are eligible for Refund but some restirction is levied u/s 239, 240 and 242 with a famous case law of Shelly Products is also to be consider, which restrict you to do so.
So here complete matter is a question of discussion and arguments with AO.
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