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Bombay High Court Slams Interest Demands Against Microsoft
The Bombay High Court has ruled that levying interest outside of statutory provisions is unconstitutional under Article 265 of the Constitution of India.
Microsoft Corporation (India) Pvt. Ltd. was facing demands for over ₹1.40 crore in interest, which the company argued it had paid within the legally prescribed due dates.
The court held that paying tax within the time specified by law cannot be branded as an impermissible 'colorable device' or 'deferment', merely because the taxpayer experienced substantial turnover growth during the financial year.