Malathy Constructions Vs Deputy State Tax Officer 2 (Madras High Court)
Madras High Court has dismissed a writ petition filed by Malathy Constructions, which sought to challenge an assessment order issued by the Deputy State Tax Officer 2. The Court, while upholding the tax department’s decision, has provided the construction firm a limited opportunity to file an appeal against the order, subject to specific financial conditions.
The case stemmed from an assessment order dated August 19, 2024, against which Malathy Constructions filed a writ petition. The petitioner’s counsel informed the High Court that a show cause notice was issued on May 22, 2024, to which a reply was submitted on June 7, 2024. Despite being offered a personal hearing, the petitioner admitted to not appearing before the tax authority. Consequently, the assessment order was finalized, rejecting the petitioner’s reply. Malathy Constructions initially sought to have the order set aside, requesting another chance to submit a more comprehensive reply and present their case.
The learned Government Advocate, representing the Deputy State Tax Officer 2, countered by asserting that due process was strictly followed. It was highlighted that Malathy Constructions was provided three separate opportunities for a personal hearing through notices dated July 4, 2024, July 12, 2024, and July 23, 2024. The Government Advocate emphasized that the petitioner failed to utilize these opportunities. Furthermore, the petitioner’s submitted reply was deemed “insufficient,” leading to its rejection in the final assessment. The respondent’s counsel argued that adequate chances were given, justifying the assessment order, and suggested that an appeal was the appropriate legal recourse for the petitioner.
