Matter to be Remanded Back Since Order Was Passed Without Considering Relevant Material Placed on Record | HC

Case Details: A.D. Jeyaveerapandia Nadar & Bros. v. State Tax Officer - [2024] 159 taxmann.com 413 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • Hari Radhakrishnan for the Petitioner.
  • C. Harsha Raj, Addl. Govt. Pleader (T) for the Respondent.

Facts of the Case

In the present case, the petitioner-assessee was engaged in wholesale and retail trading of grocery and agricultural produce. A show cause notice was issued to petitioner which set out defects noticed by audit team and reply was submitted by the petitioner. Thereafter, an assessment order was passed confirming entire proposal made in show cause notice and also imposing penalty of 10% of tax was levied on assessee. The petitioner then filed a writ petition in the Madras High Court, arguing that the assessment order was non-speaking.

High Court Held

The Honorable High Court noted after examining impugned order that tax liability under ‘7’ heads was determined therein and as regards turnover mismatch, Assessing Officer set out particulars provided and recorded that petitioner had produced balance sheet and profit and loss account for relevant year and thereafter recorded that “reply of dealer is not acceptable”.

Moreover, the reply clearly disclosed that the sundry creditors’ list, payment date, bank date and bank statement were enclosed but without considering these documents, a finding that bank statement was not provided was recorded in the impugned order. Therefore, the Court held that the impugned order was issued without taking into account relevant material placed on record and thus, the impugned order was liable to be set aside and matter to be remanded for reconsideration.