Appeal Against Penalty Can’t Be Rejected Merely Because Tax Wasn’t Challenged | HC

Case Details: Aatral Associates v. State Tax Officer - [2024] 166 taxmann.com 141 (Madras)

Judiciary and Counsel Details

• Krishnan Ramasamy, J.
• P. Rajkumar for the Petitioner.
• C. Harsha Raj, Additional Government Pleader for the Respondent.

Facts of the Case

In the present case, the department issued show cause notice (SCN) to the petitioner and thereafter, the impugned assessment order was passed by imposing tax and penalty. The petitioner paid the tax but challenged the imposition of penalty by filing appeal. However, the Appellate Authority rejected appeal on ground that penalty alone could not be challenged. Therefore, the petitioner filed writ petition against it.

High Court Held

The Honorable High Court noted that in the instant case, the petitioner had already paid the entire tax amount and filed an appeal only against the penalty imposed. It was not proper for the Appellate Authority to reject the said appeal merely because tax wasn’t challenged. Therefore, the Court directed the Appellate Authority to take the appeal on record and pass appropriate orders on merits and in accordance with law.