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1995 (1) TMI 356 - HC - VAT and Sales Tax
Issues:
Assessment of additions made in the assessment year 1980-81 based on a search operation, dispute over the addition of Rs. 50,000 and Rs. 3,600 sustained by the Tribunal, consideration of various items in the assessment, deletion of certain additions by the Tribunal, challenge to the sustained additions in the revision before the Court. Analysis: The judgment by the Madras High Court, delivered by Thanikkachalam J., pertains to an assessment dispute for the assessment year 1980-81 involving an assessee dealing in electrical goods. The additions in question, totaling Rs. 50,000 and Rs. 3,600, were sustained by the Tribunal out of a larger sum of Rs. 1,84,068 and Rs. 3,591 previously addressed by the Appellate Assistant Commissioner. The Tribunal considered various items for assessment, including entries in slip numbers, book marks, and stock discrepancies. The Tribunal deleted the addition of Rs. 71,800 related to certain entries in slip numbers, as the Appellate Assistant Commissioner's dismissal was found lacking in merit regarding sales correlation. Similarly, the Tribunal also deleted the addition of Rs. 1,10,110 concerning cables, as the estimate was deemed unreliable without conclusive evidence, despite the departmental representative's findings on stock discrepancies. Regarding the addition of Rs. 2,158 for aluminium coils, the Tribunal ruled in favor of the assessee, noting that these were not sales suppression but items received from a specific source. Additionally, sums of Rs. 1,590, Rs. 149, and Rs. 1,852 were also accepted as not constituting sales, based on explanations provided. The Tribunal estimated and sustained an addition of Rs. 50,000 and Rs. 3,600 for entries related to stocks, as they were not easily verifiable without proper documentation. However, the Court found a lack of explanation in the Tribunal's order regarding the sustenance of these additions after previously deleting larger amounts. Consequently, the Court could not uphold the sustained additions of Rs. 50,000 and Rs. 3,600, leading to the allowance of the revision filed by the assessee. In conclusion, the Court allowed the petition, resulting in the deletion of the additions of Rs. 50,000 and Rs. 3,600, with no costs imposed.
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