Order quashing ITC claim without considering relevant documents is liable to be set aside.


Order quashing ITC claim without considering relevant documents is liable to be set aside.


A recent ruling from the Madras High Court underscores the importance of due diligence and the consideration of all relevant documents when assessing Input Tax Credit (ITC) claims. This article delves into the case of Ingram Micro India (P.) Ltd. v. State Tax Officer, where the court set aside an order that dismissed an ITC claim without proper examination of evidence.

In a significant legal development, Ingram Micro India Pvt Ltd has challenged a GST assessment order for the FY 2017-2018. The company, contested the order dated 21.12.2023, alleging lack of proper evaluation and consideration by the assessing authority.

In this particular instance, the department sent a show cause notice (SCN) to the petitioner for not paying suppliers for a period longer than 180 days. The petitioner submitted reply along with Chartered Accountant’s certificate but the assessing authority issued order on the basis of total trade payables of the petitioner.

The company filed writ petition against the order and contended that the assessing authority considered total trade payables since it failed to provide a proper break-up of net trade payable relating to the State of Tamil Nadu.

The Honorable High Court noted that the assessing authority failed to consider certificate from a Chartered Accountant and all documents submitted by the petitioner. The Court also noted that under the Companies Act, 2013, every company is required to file financial statements in respect of its entire operations and there is no provision for filing State-specific financial statements. Therefore, the Court held that the impugned order was liable to be quashed and matter was remanded for reconsideration by assessing authority.

{Micro India Pvt Ltd Vs State Tax Officer (Madras High Court)


The copy of the order is as under:

Ingram-Micro-India-Pvt-Ltd-Vs-State-Tax-Officer-Madras-High-Court (1)



krishnakant Jakhotia

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Email Id :- taxtalknew@gmail.com