Separate corporate personality bars withholding one company's tax refund for another company's arrears without statutory basis.

A company remains a separate juristic person distinct from its directors and other companies, so one company's refund cannot be withheld merely because another company owes tax arrears and shares a common director. In the absence of any statutory provision or material showing that the petitioner-company had assumed the third company's liability, the refund could not be treated as available for recovery of that other company's dues. The withholding was therefore unsustainable, and the refund had to be released to the petitioner with interest in accordance with law.

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Issues: Whether the refund due to the petitioner-company could be withheld merely because another company was in arrears of tax and the petitioner's managing director was also a director of that company.

Analysis: A company is a separate juristic person distinct from its directors and from other companies. In the absence of any statutory provision or material showing that the petitioner's company had assumed the tax liability of the third company, the mere commonality of a director did not justify treating the petitioner's refund as available for recovery of the third company's dues.

Conclusion: The withholding of the refund was unsustainable and the refund had to be released to the petitioner with interest in accordance with law.

Ratio Decidendi: Liability of one company cannot be fastened on another company merely because of a common director unless the statute expressly so provides or the liability is otherwise legally established.

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