Certificate from Chartered Accountant is required to be considered by the department before while disallowing the claim of ITC

Last updated: 19 February 2024

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Quick Summary

The Madras High Court has ruled that tax authorities must consider certificates from Chartered Accountants when assessing Input Tax Credit (ITC) claims. In a case involving Ingram Micro India, the court found that the Assessing Authority failed to properly consider the evidence, including a CA certificate detailing state-specific trade payables, before disallowing ITC. The court quashed the original order and remanded the case for reconsideration, emphasising the importance of due diligence.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of Ingram Micro India (P.) Ltd. v. State Tax Officer [Writ Petition No. 594 of 2024 dated January 12, 2024] held that the Assessing Authority did not apply their mind before drawing conclusions and failed to consider the certificate issued by a Chartered Accountant and all documents submitted by the Assessee. Hence, the Impugned Order was remanded for reconsideration.

Citation :
Writ Petition No. 594 of 2024 dated January 12, 2024

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