Order Quashing ITC Claim Without Considering Relevant Documents is Liable to Be Set Aside | HC

Case Details: Ingram Micro India (P.) Ltd. v. State Tax Officer - [2024] 158 taxmann.com 554 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J
  • G. Natarajan, for the Petitioner.
  • Mrs K. Vasanthamala, for the Respondent.

Facts of the Case

In the present case, the department issued show cause notice (SCN) to the petitioner with regard to non-payment to suppliers for a period exceeding 180 days. The petitioner submitted reply along with Chartered Accountant’s certificate but the assessing authority issued order on the basis of total trade payables of the petitioner.

It filed writ petition against the order and contended that the assessing authority considered total trade payables since it failed to provide a proper break-up of net trade payable relating to the State of Tamil Nadu.

High Court Held

The Honorable High Court noted that the assessing authority failed to consider certificate from a Chartered Accountant and all documents submitted by the petitioner. The Court also noted that under the Companies Act, 2013, every company is required to file financial statements in respect of its entire operations and there is no provision for filing State-specific financial statements. Therefore, the Court held that the impugned order was liable to be quashed and matter was remanded for reconsideration by assessing authority.