Refex Industries Limited has informed the Exchange about General Updates - Order of Hon ble Madras High Court Quashing Income Tax Demand of ₹3,567.22 lakh for AY 2016 17
REFEX · price
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The Madras High Court has set aside an income tax assessment order against Refex Industries for Assessment Year 2016-17, effectively cancelling a tax demand of ₹3,567.22 lakh (approximately ₹35.67 crore). The company had filed a writ petition challenging the order issued by the Deputy Commissioner of Income Tax (Central Circle 3(4), Chennai) on May 31, 2023, arguing that the assessment was passed without giving a reasonable opportunity of being heard under Section 144A of the Income Tax Act and without proper approval. The court agreed with the company's submissions and quashed the demand. This removes a significant contingent liability that had been hanging over the company for nearly three years.
Positive for shareholders — a tax demand of roughly ₹35.67 crore has been nullified, removing a major financial liability and reducing future cash outflow risk. The ruling also signals that past tax disputes are being resolved in the company's favour, which should support sentiment around the stock.