M/S.Sba Associates Vs The State Tax Officer (St) — Writ and Judicial Review | Madras HC (2025)

M/S.Sba Associates Vs The State Tax Officer (St) — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

Delay in filing the appeal against the impugned assessment order condoned, conditional on depositing 5% of the disputed tax demand over and above the 10% statutory pre-deposit; petitioner granted liberty to file the appeal within two weeks; Appellate Authority directed to take the appeal on record and consider it on merits, with sufficient opportunity and without pressing limitation; writ petition dismissed as withdrawn with no costs and connected miscellaneous petitions closed.

Issue for consideration

Whether the Court should condone the delay in filing the appeal against the impugned assessment order dated 20.02.2025 and grant the petitioner liberty to prefer the appeal, subject to payment of pre-deposits.

Court's answer

The reason assigned by the petitioner for the delay in filing the appeal against the assessment order appears to be genuine.

Ratio / Principle

The delay in filing the appeal against the impugned assessment order dated 20.02.2025 is condoned on condition that the petitioner deposits 5% of the disputed tax demand over and above the 10% statutory pre-deposit, in respect of the impugned assessment period.

Key takeaways

The petitioner is directed to file the appeal within a period of two weeks from the date of receipt of a copy of this order.ratio¶¶63
In such case, the Appellate Authority is directed to take the appeal on record and consider the appeal filed by the petitioner on its own merits and in accordance with law.ratio¶¶64,67
The appeal is to be considered by providing sufficient opportunity to the petitioner, without pressing for limitation.

Detailed headnote1 paragraphs

MADRAS HC — SINGLE JUDGE (KRISHNAN RAMASAMY J.) — WP No. 25285 of 2025 (with WMP Nos. 28467 & 28468 of 2025) — DATED 15-07-2025. Tax assessment — Article 226 writ (certiorari) by M/S. SBA Associates challenging assessment order dated 20.02.2025 (no. 33AEFPB4865H1ZP/2020-21, FY 2020-21) of the State Tax Officer (ST), Ashok Nagar Assessment Circle, as arbitrary. Show cause notice, reminders and the assessment order having been uploaded only on the portal, the petitioner was unaware of the proceedings, could not reply, and lost the appeal remedy. Petitioner withdrew the challenge to the assessment order and sought only condonation of delay and liberty to file an appeal, volunteering 15% of the disputed tax amount (10% statutory pre-deposit + 5% additional). Court found the reason for the delay genuine and: (i) condoned the delay on condition of depositing 5% of the disputed tax demand over and above the 10% statutory pre-deposit; (ii) directed filing of the appeal within two weeks; (iii) directed the Appellate Authority to take the appeal on record and consider it on its own merits and in accordance with law, affording sufficient opportunity without pressing limitation. Writ petition dismissed as withdrawn; no costs; connected miscellaneous petitions closed.

WP No. 25285 of 2025

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 15-07-2025

CORAM

THE HONOURABLE MR JUSTICE KRISHNAN RAMASAMY

WP No. 25285 of 2025 AND

WMP NO. 28467 OF 2025,WMP NO. 28468 OF 2025

M/S.SBA Associates, Rep by its Proprietor, S.S. Babu, No.1A, Selva Vinayagar Koil Street Sekar Nagar Ashok Nagar Chennai-83.

Petitioner(s)

Vs

The State Tax Officer (ST), Ashok Nagar Assessment Circle, No.1, Greams Road, Annex Building, PAPJM Building, Chennai-06.

Respondent(s)

PRAYER:- Writ Petition filed under article 226 of the Constitution of India, praying for an issuance of Writ of Certiorari, calling for the records on the file of the respondent and to quash the impugned assessment order dated 20.02.2025 bearing no.33AEFPB4865H1ZP/2020-21 passed by the respondent as arbitrary.

https://www.mhc.tn.gov.in/judis

WP No. 25285 of 2025

For Petitioner(s): Mr.J.Ashish

For Respondent(s): Ms.Amirta Poonkodi Dinakaran Government Advocate (taxes)

ORDER

This writ petition has been filed by the petitioner challenging the

impugned assessment order dated 20.02.2025, passed by the respondent for the

Financial Year 2020-21.

2.Ms.Amirta Poonkodi Dinakaran, learned Government Advocate

(Taxes), takes notice on behalf of the respondent.

3 . By consent of the parties, the main writ petition is taken up for disposal

at the admission stage itself.

4.When this matter was taken up for hearing, the learned counsel for the

petitioner would submit that the petitioner is willing to file an appeal against the

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WP No. 25285 of 2025

impugned assessment order dated 20.02.2025. Therefore, though he had sought

for larger relief in this petition, he had restricted his relief to the extent to

request this Court to grant liberty to the petitioner to file an appeal.

5.He would further submit that since the show cause notice and the

reminders were uploaded in the portal and therefore, the petitioner was unaware

of the assessment proceedings and they could not file their reply and

consequently the impugned assessment order came to be passed. Even the

impugned assessment order was also uploaded in the portal, due to which the

petitioner lost the appeal remedy as well. Further, now the petitioner is ready

and willing to pay 15% of the disputed tax amount, i.e., 10% towards statutory

pre-deposit for filing the appeal along with additional pre-deposit of 5% and

hence, he requests this Court to condone the delay in filing the appeal and grant

a liberty to prefer an appeal.

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WP No. 25285 of 2025

6.In reply, the learned Government Advocate appearing for the

respondent would submit that if the Court satisfied with the reason assigned by

the petitioner for condonation of delay, as per the voluntary submissions made by the learned counsel for the petitioner, subject to the deposit of 5% of the disputed tax demand in addition to the 10% pre-deposit, in respect of the impugned assessment period, the Court may direct the petitioner to pursue the appeal.

7 . Heard the learned counsel for the petitioner as well as the learned

Government Advocate for the respondent and perused the materials available on

record.

8 .T hough the petitioner prayed for larger relief, he had restricted his relief

and requested this Court to condone the delay in filing the appeal against the

impugned assessment order since it will be sufficient to meet out the case of the

petitioner. Further, the reason assigned by the petitioner, for the delay in filing

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WP No. 25285 of 2025

the appeal against the assessment order, appears to be genuine.

9.In view of the above, though this petition has been filed challenging the

impugned order dated 20.02.2025, considering the submissions made by the petitioner, this Court is inclined to condone the delay in filing the appeal against

the impugned assessment order.

10.Accordingly, this Court pass the following orders:-

(i) The delay in filing the appeal against the impugned assessment order dated 20.02.2025 is hereby condoned on condition to deposit 5% of the disputed tax demand over and above the 10% statutory pre-deposit, in respect of the impugned assessment period.

(ii) The petitioner is directed to file appeal within a period of two weeks from the date of receipt of a copy of this order.

(iii) In such case, the Appellate Authority is directed to take the appeal on record and consider the said appeal filed by the

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WP No. 25285 of 2025

petitioner on its own merits and in accordance with law, by providing sufficient opportunity to the petitioner, without pressing for limitation.

11.With the above directions, this writ petition is dismissed as withdrawn.

No costs. Consequently, the connected miscellaneous petitions are also closed.

15-07-2025

rst

Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No

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WP No. 25285 of 2025

To

The State Tax Officer (ST) Ashok Nagar Assessment Circle, No.1, Greams Road, Annex Building, PAPJM Building, Chennai-06.

https://www.mhc.tn.gov.in/judis

WP No. 25285 of 2025

KRISHNAN RAMASAMY J.

rst

WP No. 25285 of 2025

AND WMP NO. 28467 OF 2025, WMP NO. 28468 OF 2025

15-07-2025

https://www.mhc.tn.gov.in/judis