Bombay High Court Quashes Tax Notice Against Force Motors, Citing Procedural Flaws

Image Source : Trade Brains

Force Motors Ltd has secured relief from the Bombay High Court after the bench set aside a tax notice issued by the Maharashtra tax authorities. The court found procedural lapses in the issuance of the notice, which pertained to legacy tax claims.

Key Highlights:

The tax notice, reportedly linked to past assessments, was challenged by Force Motors on grounds of jurisdictional error and lack of due process.
The High Court ruled that the notice was invalid as it was not issued by the designated Faceless Assessing Officer, violating CBDT’s faceless assessment framework.
The decision aligns with recent precedents where similar notices were quashed due to administrative noncompliance.

Strategic Impact:

The ruling removes a potential liability overhang and reinforces Force Motors’ legal standing in ongoing tax matters.
It also signals stricter judicial scrutiny of legacy tax enforcement under the faceless regime.

Sources: TaxGuru, Bombay High Court Filings, Economic Times.