Union Of India (Uoi) And Anr. vs British India Corporation Ltd. And Ors.

The Supreme Court upheld the High Court's decision to quash the orders of the Income Tax Appellate Tribunal and the Inspecting Assistant Commissioner of Income Tax, directing a refund of Rs. 32,85,964 to the respondent assessee. The Court clarified that the provisional assessment orders do not merge with the regular assessment orders, and thus, the rejection of the refund claim based on the merger theory was incorrect. The Court also noted that the claim for refund was not time-barred as per the provisions of the Business Profits Tax Act, 1947, and the relevant rules.