Revenue department cannot initiate assessment proceedings once moratorium order has been passed by NCLAT

Last updated: 21 February 2023

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The Madras High Court has ruled that tax assessment proceedings cannot be initiated by the Revenue Department once a moratorium order has been passed by the National Company Law Appellate Tribunal (NCLAT). The court quashed an assessment order and recovery notice because the assessee was not given a hearing and their arguments were ignored, violating natural justice principles. The case was sent back for reconsideration, with instructions to provide a hearing.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in Tvl. ITNL-KMB (J.V.) v. The Deputy Commissioner of (ST), [W.P. Nos.2850 and 2852 of 2023 and W.M.P. Nos.2968 and 2973 of 2023 dated February 3, 2023] quashed the assessment order and the consequential recovery notice issued by the Revenue Department on the grounds that no opportunity of hearing was afforded to the assessee and contentions of the assessee were also not considered, thus the same was a violation of the principles of natural justice. Remanded the matter back to the Revenue Department for fresh consideration in accordance with the law after providing the opportunity of hearing to the Petitioner.

Citation :
W.P. Nos.2850 and 2852 of 2023 and W.M.P. Nos.2968 and 2973 of 2023 dated February 3, 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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