https://www.taxtmi.com/caselaws?id=40364 Section 26C of the Interest-tax Act was treated as an enabling provision allowing banks to recover only the interest-tax actually payable from borrowers; it did not authorise grossing up or rounding the burden to the next higher 0.25 per cent., so the challenged recovery method was unlawful. Maintainability objections based on locus standi, delay, and the contractual form of the loan relationship failed because the dispute concerned a continuing, publicly significant illegal recovery. The Reserve Bank's approval under section 35A of the Banking Regulation Act could not enlarge the scope of the taxing statute or cure a recovery beyond statutory authority. The impugned method was rejected and the appeals were dismissed. en-us Fri, 16 Apr 2004 00:00:00 +0530 Sat, 05 Jul 2025 11:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=40364 Section 26C of the Interest-tax Act was treated as an enabling provision allowing banks to recover only the interest-tax actually payable from borrowers; it did not authorise grossing up or rounding the burden to the next higher 0.25 per cent., so the challenged recovery method was unlawful. Maintainability objections based on locus standi, delay, and the contractual form of the loan relationship failed because the dispute concerned a continuing, publicly significant illegal recovery. The Reserve Bank's approval under section 35A of the Banking Regulation Act could not enlarge the scope of the taxing statute or cure a recovery beyond statutory authority. The impugned method was rejected and the appeals were dismissed. Case-Laws Income Tax Fri, 16 Apr 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=40364