Refex Industries Limited has received a favorable outcome from the Hon’ble Madras High Court, which has set aside a tax demand amounting to ₹3,567.22 lakh for the Assessment Year 2016-17. The Court’s decision follows the company’s challenge against an assessment order issued in May 2023. As a result of this ruling, the significant tax liability previously imposed on the company now stands nullified.
Court Ruling on Tax Dispute
In a significant relief for Refex Industries Limited, the Hon’ble Madras High Court has officially quashed a tax demand of ₹3,567.22 lakh related to the assessment year 2016-17. The dispute originated from an assessment order issued by the Deputy Commissioner of Income Tax on May 31, 2023.
Basis for Legal Challenge
The company had filed a writ petition to challenge the tax authorities’ order, citing procedural failures. The core arguments presented by the company included the lack of a reasonable opportunity to be heard, which is a mandatory requirement under Section 144A of the Income Tax Act, 1961. Furthermore, the company contended that the necessary approvals required for issuing the notice were not obtained by the assessing officer.
Impact of the Decision
Following a review of the company’s submissions, the Madras High Court decided to set aside the assessment order in its entirety. The formal order confirming this relief was received by the company on April 28, 2026. With this ruling, the previously contested tax demand is now considered nullified, providing the company with immediate financial clarity regarding its tax obligations for the 2016-17 fiscal period.
Source: BSE
