GST demand cannot be raised based on figures in Profit and Loss Account

Last updated: 23 March 2024
Quick Summary
The Madras High Court has ruled that tax authorities cannot raise a Goods and Services Tax (GST) demand based solely on the figures presented in a company's Profit and Loss account. The court found that the assessment order in this case was issued without proper application of mind, violating principles of natural justice. Consequently, the order was quashed and remitted for reconsideration.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of M/s. Ralco Synergy Pvt. Ltd. v. Joint Commissioner of State Tax and Ors. [W.P. No. 5554 of 2024 dated March 5, 2024] set aside the Impugned Order passed by the Revenue Department, thereby holding that, GST demand cannot be raised based on figures in Profit and Loss Account.

Citation :
W.P. No. 5554 of 2024 dated March 5, 2024

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Bimal Jain
Published in GST
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