RR Hotel Vs Commissioner (Madras High Court)
Madras High Court has intervened in favor of RR Hotel, directing tax authorities to permit the petitioner to avail the New Samathana Scheme 2023 for commercial tax arrears pertaining to assessment periods 2015-16, 2016-17, and 2017-18. The Court’s decision recognizes that the delay in the finalization of assessment orders was not attributable to the hotel, thus making it eligible for the state government’s settlement scheme.
RR Hotel, located in Cumbum, operates under the provisions of the Tamil Nadu Taxes (Settlement of Arrears) Act, 2023, which introduced the New Samathana Scheme from October 16, 2023, to February 15, 2024. This scheme aimed to settle tax arrears up to the 2017-18 assessment period. The petitioner successfully utilized this scheme for assessment years 2012-13 to 2014-15.
However, RR Hotel was initially prevented from availing the scheme for the periods from 2015 onwards. The hotel’s counsel explained that while pre-assessment notices for these years were issued in 2018, the final assessment orders were only passed in 2023, after a significant delay of five years. This extended delay, beyond the control of the petitioner, meant that by the time the final demands were raised, the window for the Samathana Scheme had closed.
