Back
2026 Supreme(Online)(Mad) 78905
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Senthilkumar Ramamoorthy, J
Atika International – Appellant
Versus
The Deputy State Tax Officer – Respondent
WP No. 29719 of 2026 | WMP Nos. 32689 & 32690 of 2026
For the Appellants/Petitioners: Parthiban V
For the Respondents: I. Dinesh
The court set aside a tax assessment order and remanded the matter for fresh consideration, contingent upon a 25% pre-deposit of the disputed tax, to ensure the petitioner's right to a reasonable hearing under the principles of natural justice.
Headnote:(A) Natural Justice - Opportunity of Hearing - An order passed without providing a reasonable opportunity to the petitioner to contest a tax demand on merits is violative of the principles of natural justice and liable to be set aside. (Para 1, 4)
(B) Procedural Compliance - Remand - Where the period of limitation for appeal has expired, the court may remand the matter for reconsideration subject to the payment of a percentage of the disputed tax demand. (Para 3, 4)
Issues: Whether the impugned order under Section 74 was passed in violation of the principles of natural justice by denying the petitioner a reasonable opportunity for a hearing.
| Table of Content |
|---|
| 1. procedural history and the petitioner's agreement to pay a partial pre-deposit due to the expiry of the limitation period. (Para 1 , 2 , 3) |
| 2. setting aside of the impugned order and remanding the matter for fresh adjudication to uphold the principles of natural justice. (Para 4 , 5) |
Prayer : Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of certiorarified Mandamus praying to call for the records of impugned order under Section 74 dated 11.03.2025 having Reference No. ZD330325060552P passed by the respondent for the financial year 2020-21 and quash the same as illegal, erroneous on facts and violative of principles of Natural Justice and consequently direct the respondent to consider the matter afresh on merits after providing an opportunity of personal hearing and pass
ORDER
Order dated 11.03.2025 is assailed on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits.
2. Mr. I.Dinesh, learned Additional Government Pleader (Tax), accepts notice on behalf of the respondent.
3. The period of limitation for filing an appeal has expired. On instructions, learned counsel for the petitioner agrees to pay 25% of the disputed tax demand. An endorsement to that effect is made on the bundle.
4. Subject to the condition that the petitioner remits 25% of the disputed tax demand within thirty days from the date of receipt of a copy of this order, the impugned order is set aside and the matter is remanded for re-consideration. After providing a reasonable opportunity to the petitioner, a fresh order shall be issued within three months from the date of remittance of 25% of the disputed tax demand.
5. The writ petition is disposed of on the above terms. Consequently, connected miscellaneous petitions are closed. There shall be no order as to costs.
11-08-2026
Index: Yes/No
Speaking/Non-speaking order Neutral Citation: Yes/No
KAL
