No Recovery proceedings can be initiated until Investigation is completed

Last updated: 25 November 2023

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The Madras High Court has ruled that revenue recovery proceedings against a company cannot commence until a cybercrime investigation into alleged login ID misuse is concluded. The investigation, to be completed within 18 months, will determine if the company was a victim of fraud or complicit in tax evasion. Until then, all recovery actions are suspended.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of M/s. Shewil Trading Company v. The Commissioner of Commercial Taxes & Ors. [W.P. No. 26493 of 2022 dated November 02, 2023] directed the Cyber Crime Cell Inspector to complete the investigation within eighteen (18) months from receipt of a copy of the order. Till such investigation is completed, all revenue recovery proceedings against the Petitioner shall be kept in abeyance. In case, the complaint of the Petitioner turns out to be untrue or was intended to facilitate fraud being committed using the login ID of the Petitioner, the assets of the Petitioner shall be brought to sale and the writ petition stands disposed.

Citation :
W.P. No. 26493 of 2022 dated November 02, 2023

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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