Refex Industries Limited has announced a significant legal victory as the Hon’ble Madras High Court has quashed an income tax demand of ₹3,567.22 lakh for the Assessment Year 2016-17. The court’s decision nullifies the demand previously issued by the Deputy Commissioner of Income Tax – Central Circle 3(4), Chennai, on May 31, 2023.
The company had challenged the assessment order on the grounds that it was issued without providing a reasonable opportunity for Refex Industries to be heard, as required under section 144A of the Income Tax Act, 1961. Additionally, the company argued that no appropriate approval was obtained for issuing the notice.
After reviewing the submissions, the Madras High Court set aside the assessment order, effectively nullifying the tax demand. Refex Industries received the court’s order on April 28, 2026, marking a favourable outcome for the company.
This development is a significant relief for Refex Industries, as the quashing of the tax demand removes a substantial financial liability from its books.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).