Date of rectification order relevant date for calculating limitation period for filing of appeal

The Madras High Court (Madurai Bench) has ruled that the date of a rectification order is the relevant date for calculating the limitation period for filing an appeal. This decision was made in a case where the petitioner feared their appeal would be time-barred if calculated from the original assessment date. The court accepted the argument that the limitation period should commence from the date of the rectification order.

The Hon'ble Madras High Court (Madurai Bench) in the case of M/s. SPK and Co v. State Tax Officer [W.P. (MD) No. 27787 of 2024 dated November 22, 2024] disposed the writ petition thereby holding that the date of limitation for filing of appeal would start from the date of passing of rectification order.

Facts:

M/s. SPK and Co. ("the Petitioner") filed a writ petition challenging the order of assessment and rectification passed by the Revenue Department ("the Respondent") on account of issuance of vague SCN.

However, the Hon'ble High Court during the proceeding stated that it would be more appropriate for the Petitioner to approach appellate authority.

However, the Petitioner stated that the appellate authority would press upon calculating the period of limitation from the date when the original assessment order was passed and, in such case, the appeal would be beyond the period of limitation and thus, there is an apprehension that the appeal would not be entertained due to limitation issue.

Further, it was contended that since the rectification application filed was rejected, the period of limitation would only start from the date of which rectification order has been passed.

Issue:

Whether the limitation period would start from the date of passing of rectification order?

Held:

The Hon'ble Madras High Court (Madurai Bench) in the case of W.P. (MD) No. 27787 of 2024 accepted the submissions made by the Petitioner and held that the date of limitation for filing of appeal for challenging the assessment order would start from the date of passing of rectification order.

Our Comments:

Also, the Hon'ble Madras High Court in the case of TVL. SKL Exports v. State Tax Officer and Others (W.P. No. 6825 dated March 14, 2024) allowed the writ petition and directed that appeal be accepted by the Department after considering the date of order rejecting refund application, as the relevant date for limitation purpose; for filing of appeal.

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