Tax Liability cannot be imposed merely because the financial statement did not provide State-wise turnover

Last updated: 05 April 2024

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court, in the case of Tvl. Future General India Insurance Co. Ltd. v. Assistant Commissioner (State Tax) [WP No. 3534 OF 2024 dated February 16, 2024] held that an assessment order passed by the Assessing Officer, had accepted the explanation of the assessee with regard to certain defects but had imposed GST at rate of 36% instead of18 % on the ground that the financial statements submitted by the assessee did not reflect state-wise turnover, the impugned assessment order was to be set aside, and the matter was to be remanded to the Competent Authority for reconsideration. Thus, the writ petition is disposed of and the assessing officer is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh assessment order in accordance with law.

Citation :
WP No. 3534 OF 2024 dated February 16, 2024