1992 (6) TMI 169 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of total and taxable turnover for the assessment year 1978-79.
2. Imposition of penalty under section 12(3) of the Tamil Nadu General Sales Tax Act, 1959.
3. Appeal before the first appellate authority regarding turnover and penalty.
4. Further appeal before the Appellate Tribunal and application for enhancement by the Revenue.
5. Justification of additions for probable suppressions in the accounts.
6. Legality of the Tribunal's decision and power to enhance assessment.

Analysis:
1. The petitioners, dealers in various goods, reported a total turnover of Rs. 6,46,277.29 and taxable turnover of Rs. 23,453.34 for the assessment year 1978-79. However, serious defects in their accounts led to the rejection of the accounts by the assessing authority. The actual suppression of turnover was found to be Rs. 87,074.61, resulting in the total turnover being determined at Rs. 8,26,169 and taxable turnover at Rs. 1,97,603, with a penalty imposed under section 12(3) of the Act.

2. The petitioners appealed before the first appellate authority, which reduced the turnover attributed to chillies to Rs. 51,105 and the penalty to Rs. 1,022. The Revenue filed an application for enhancement before the Appellate Tribunal, which upheld the assessing authority's determination of suppressed turnover for chillies at Rs. 51,105 and added an equal amount for probable suppression prior to the period covered by the sales slips, resulting in a revised suppressed turnover of Rs. 1,02,210 taxable at 4 per cent.

3. The High Court, upon reviewing the orders of the lower authorities, found no fault with the Tribunal's decision to justify the additions for probable suppressions prior to the period covered by the sales slips. The Court agreed with the continuous pattern of suppression revealed in the accounts and upheld the Tribunal's findings on the necessity for additional turnover. The Court also rejected the argument that the Tribunal lacked the power to entertain applications for enhancement, citing a previous decision establishing the Tribunal's authority to enhance assessments.

4. Consequently, the High Court dismissed the tax case (revision) and declined to interfere with the Tribunal's order. The Court rejected the plea that the Tribunal lacked the power to enhance assessments before a specific enactment, affirming the Tribunal's authority in this regard. The petition was dismissed, and no costs were awarded in the circumstances of the case.