Income Tax Assessment Order Challenged Over Rs.136 Crore Expenses: Madras HC disposes Petition Leaving to Contest before Appellate Authority [Read Order]

The Madras High Court disposed of a writ petition challenging an Income Tax Assessment order that disallowed expenses totaling Rs.136 crores. \r

Justice Senthilkumar Ramamoorthy noted that while the petitioner's submissions and documents were reviewed in detail during the proceedings, the validity of the assessment's findings required reappraisal best suited for the appellate authority. The petitioner, Sri Jaya Sakthi Edible Oils Pvt Ltd, had initially declared income under Section 115JB of the Income Tax Act for the assessment year 2023-24. \r

Despite submitting audited financial statements, GST returns, and bank statements to substantiate expenses, the assessing officer concluded they were unsubstantiated. The court acknowledged both sides but ultimately directed the petitioner to pursue statutory appeal options. It mandated the appellate authority to promptly adjudicate on the appeal within fifteen days of receiving the court's order copy. \r

Senior counsels Mr. G. Ashokapathy and Dr. B. Ramaswamy represented the petitioner and respondents, respectively.