Refex Industries has received a favorable verdict from the Hon’ble Madras High Court, which has set aside an income tax demand of ₹3,567.22 lakh for the Assessment Year 2016-17. The company had contested the initial assessment order, citing a lack of procedural fairness and failure to provide an adequate opportunity for a hearing. With this court intervention, the outstanding tax liability against the company stands nullified.
Court Ruling Overturns Tax Liability
Refex Industries has achieved a significant legal resolution regarding its tax obligations for the assessment year 2016-17. The company successfully challenged an assessment order issued on May 31, 2023, by the Deputy Commissioner of Income Tax, which had previously imposed a substantial demand of ₹3,567.22 lakh.
Grounds for the Legal Challenge
The company escalated the matter to the Hon’ble Madras High Court after identifying critical procedural lapses in the original assessment process. Refex Industries argued that the authorities had failed to provide a reasonable opportunity to be heard, violating the mandates set forth in 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 on Financial Position
Following a review of the submissions, the High Court ruled in favor of the company and set aside the contested assessment order. As a result of this judicial order, received by the company on April 28, 2026, the tax demand of ₹3,567.22 lakh is effectively nullified, providing clear relief to the company’s financial records.
Source: BSE
