1976 (3) TMI 207 - HC - VAT and Sales Tax

Summary

Issues involved: Assessment of turnover for the year 1964-65, reassessment proceedings under section 16, exemption claimed on works contracts, validity of reassessment order, Tribunal's interference with original assessment turnover.

The High Court of Madras delivered a judgment regarding the assessment of turnover for the year 1964-65. The assessee initially reported a total and taxable turnover, claiming exemption on a specific amount related to works contracts. The assessing officer accepted this explanation. However, upon further verification, the officer proposed to revise the assessment, disallowing the earlier exemption and estimating sales of sanitary goods. The reassessment order was made, bringing the entire turnover to tax, which was later confirmed in appeal. Subsequently, the Tribunal held that the entire turnover should not be taxed as it represented works contracts. The revenue's counsel raised two contentions in the revision. Firstly, they argued that the Tribunal exceeded its jurisdiction by interfering with the turnover assessed in the original order during reassessment proceedings under section 16. The counsel also contended that there was insufficient evidence to prove that the disputed amount was related to works contracts. Despite the lack of detailed discussion by the Tribunal on the works contract issue, the High Court upheld the Tribunal's decision based on the available evidence and circumstances. Ultimately, the revision petition was allowed concerning a specific turnover amount, while the rest of the turnover was upheld. No costs were awarded in this matter.