L & T Finance Limited Vs Assistant Commissioner (Madras High Court)
The Madras High Court set aside an assessment order dated December 31, 2023, against L&T Finance Limited on grounds of violating principles of natural justice. The case arose from a GST audit and subsequent show cause notice concerning discrepancies in turnover reporting and claims of exemptions for interest income. L&T Finance had responded to the notice, providing partial documentation and explanations, including rectifications made in annual returns and payment of due taxes via DRC-03. However, the assessing authority confirmed tax liabilities, citing incomplete reconciliation and insufficient evidence to substantiate the claimed exemptions.
A key contention was the denial of a personal hearing despite L&T Finance’s request for a deferment due to year-end filing commitments. The court found that the assessing officer neither granted the petitioner a hearing nor fully considered the explanations and documentation provided. Consequently, the court ordered the reassessment of the matter, granting L&T Finance an opportunity to submit additional evidence within 15 days. The tax authorities were instructed to conduct a fresh assessment within two months, ensuring adherence to natural justice principles. This judgment underscores the importance of procedural fairness in tax assessments.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
