Tvl. Nagoorar Enterprises Vs State Tax Officer (Madras High Court)
In the case of Tvl. Nagoorar Enterprises vs. State Tax Officer, the Madras High Court addressed challenges to orders imposing interest liability on the petitioner for delayed filing of returns and payment of taxes during relevant assessment periods. The petitioner cited various reasons for the delays, including family bereavements, non-payment by suppliers, and the impact of the COVID-19 pandemic. The central contention was that the petitioner had eventually filed the returns and paid the requisite taxes, but interest liability was imposed nonetheless.
The petitioner’s counsel argued that a personal hearing was not granted before the issuance of the impugned orders. Additionally, they requested permission to pay the outstanding amounts in installments, citing financial constraints exacerbated by the pandemic. It was also highlighted that a circular had been issued allowing for reduced interest rates during specific months of the COVID-19 pandemic, which the petitioner sought to apply retroactively to their case.
On behalf of the respondents, the learned Government Advocate contended that the imposition of interest, as prescribed by statute, was mandatory upon belated payment of taxes. They argued against remanding the matter, asserting that the assessing officer lacked discretion in such matters.
