Jayar Enterprises Vs CIT (Madras High Court)
Madras High Court has intervened in a tax dispute involving Jayar Enterprises, directing the Income Tax department to accept the outstanding admitted tax amount in six equated monthly installments. The ruling came after the enterprise challenged an order dated December 13, 2024, which had rejected its appeal due to the non-payment of the full admitted tax.
Jayar Enterprises approached the High Court seeking to set aside the rejection order and to be permitted to pay the balance tax amount of Rs. 28,76,662/- in installments. The petitioner’s counsel informed the court that Rs. 15,00,000/- had already been paid out of the total admitted tax. However, due to significant financial difficulties, the company was unable to remit the remaining Rs. 28,76,662/- as a single payment, leading to the rejection of their appeal.
The petitioner expressed willingness to deposit the outstanding balance, requesting the court’s intervention to facilitate installment payments. The Senior Standing Counsel representing the respondent (CIT) confirmed the submissions and did not oppose the request for an appropriate order from the court.
Considering the financial predicament of Jayar Enterprises and deeming it in the interest of justice, the Madras High Court set aside the impugned rejection order. The court granted liberty to Jayar Enterprises to clear the balance admitted tax amount of Rs. 28,76,662/- through six monthly installments.
