- The petitioner received a Show Cause Notice (SCN) for non-payment exceeding 180 days to suppliers.
- Despite submitting relevant documents, including a Chartered Accountant’s certificate, the impugned order was issued based on total trade payables.
- The petitioner challenged the order through a writ petition.
- The High Court ruled that under the Companies Act, 2013, financial statements must cover entire operations, without state-specific statements.
- A Chartered Accountant’s certificate indicated trade payables in Tamil Nadu amounting to Rs. 1816.48 million, crucial evidence overlooked by the assessing authority.
- The court quashed the order and instructed the authority to reconsider, emphasizing fair review and issuance of a fresh order.
- Urgent adjudication discipline among jurisdictional officers is stressed to prevent litigations, taxpayer harassment, and financial costs
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