2008 (12) TMI 708 - HC - VAT and Sales Tax

Refusal to accept the stock variation - Held that - Remand the matter to the assessing officer who shall examine the issue of stock variation in the light of the reconciliation statement and pass orders in accordance with law.

Summary

In the High Court of Madras, the case involved an assessee who reported total and taxable turnover for the assessment year 1998-99. The accounts of the assessee were inspected due to of stock variation noted. A proposed turnover was made by adding the actual and estimated suppression. The Tribunal accepted the plea of the assessee regarding the annual maintenance contract turnover and remanded the appeal for verification of records. However, the Tribunal refused to interfere with the stock variation discrepancy. The Tribunal failed to consider the reconciliation statement produced by the assessee. The High Court remanded the matter to the assessing officer for re-examination of stock variation in light of the reconciliation statement, emphasizing the importance of compliance with regulations when presenting additional evidence. The tax case was disposed of accordingly.