Refex Industries has received a favourable verdict from the Hon’ble Madras High Court, which has quashed an income tax demand of ₹3,567.22 lakh for the assessment year 2016-17. This decision comes after the company challenged the assessment order issued by the Deputy Commissioner of Income Tax – Central Circle 3(4), Chennai, dated May 31, 2023.
The company had filed a writ petition before the Madras High Court, arguing that the assessment order was issued without providing a reasonable opportunity for the company to be heard, as required under section 144A of the Income Tax Act, 1961. Furthermore, Refex Industries contended that no appropriate approval was obtained for issuing the notice, which led to the tax demand.
After reviewing the submissions, the Madras High Court set aside the assessment order, thereby nullifying the tax demand of approximately ₹3,567.22 lakh. The order from the court was received by Refex Industries on April 28, 2026.
This development marks a significant relief for Refex Industries, as the substantial tax demand has been nullified, allowing the company to focus on its business operations without the burden of the disputed tax liability.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).