Section 242 — the law in short
What the courts have decided on section 242, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Indglonal Investment & Finance Ltd v ITO
High CourtCuts both waysValidity unconfirmed
My client's assessment has become final and I now want the tax back because the levy was wrong. Can I run that argument as a refund claim, or in a writ petition based on Article 265?
No. In a claim under Chapter XIX section 242 forbids the assessee from questioning the correctness of an assessment or other matter that has become final and conclusive, or asking for a review of it; the authorities cannot go behind the assessment order while examining a refund. Article 265 is not violated where tax has been collected under a valid enactment and the 'wrong' order has become final — the remedy is to attack the order itself, in appeal, revision or a writ, and refund follows only as a consequence of that.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.