2009 (8) TMI 1119 - HC - VAT and Sales Tax

Summary

Issues involved: Revision filed by the department u/s 11 of the U.P. Trade Tax Act 1948 against the judgment of the U.P. Trade Tax Tribunal for the assessment year 1994-95.

Assessment of Suppressed Turnover:
The assessee, engaged in manufacturing and sale of Menthol and mentha-crystal, was found to have discrepancies in stock records and not maintaining proper books of accounts during a survey. The Assessing Officer (AO) estimated the suppressed turnover based on "best judgment" and levied tax amounting to Rs. 91,634. The first appellate authority later reduced the tax liability to Rs. 71,850 after examining the books of accounts. The Trade Tax Tribunal upheld this decision in the impugned order dated 10.05.2004.

Legal Precedents and Observations:
The High Court considered the facts and circumstances of the case, noting that estimation of turnover is a question of fact. Citing previous cases, the Court emphasized that interference is not required in such cases where estimation is a factual matter. Referring to specific cases like TTR No. 163 of 2007 and New Plaza Restaurant v. ITO, the Court highlighted that estimation is a factual issue, and no question of law emerged from the Tribunal's order in the present case.

Decision:
After reviewing the Tribunal's order and considering the lack of any legal issue, the High Court upheld the Tribunal's decision. The revision filed by the Commissioner Trade Tax, U.P. Lucknow, was dismissed, affirming the Tribunal's order and the reasons provided therein.