Tax Authorities must Adhere to Official Clarifications from Higher Authority and Cannot Reclassify Arbitrarily: Madras HC [Read Order]

The Madras High Court held that tax authorities must follow official clarifications from higher officials, upholding the binding nature of such directives
Madras High Court - Tax Authorities - Reclassify Arbitrarily - taxscan

In a recent judgement, the Madras High Court held that tax authorities must follow official clarifications from higher officials and cannot reclassify tax liabilities arbitrarily. The assessee Aathees Wetcasting Materials (P) Ltd. was engaged in the manufacturing of cement cover block stones and was taxed at 5% per the 2014 order. Aggrieved, he appealed before…

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