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2012 (9) TMI 901 - HC - VAT and Sales Tax
Issues Involved:
The judgment involves the correctness of the orders of the Tamil Nadu Sales Tax Appellate Tribunal regarding the deletion of assessment made on sales estimation and the penalty levied under section 12(3)(i)(b)(v) of the Tamil Nadu General Sales Tax Act, 1959. Deletion of Assessment on Sales Estimation: The assessing officer made a substantial addition to the turnover reported by the assessee based on an inspection conducted at the place of business. The addition was calculated by estimating the sales for the whole year based on the sales detected on a single day. However, the High Court found this method to be flawed as it did not consider factors like holidays, festivals, or weather conditions that could affect sales. The Court held that the method used by the assessing officer was unreasonable and not acceptable. The Tribunal also noted that even if 50% of the addition was restored, the assessee's turnover would still not exceed the taxable limit of Rs. 10 lakhs. Therefore, the Court upheld the decision of the Tribunal to delete the assessment made on sales estimation. Penalty under Section 12(3)(i)(b)(v) of the Act: In addition to the disputed assessment, a penalty was levied on the assessee under section 12(3)(i)(b)(v) of the Act. The Appellate Assistant Commissioner had deleted this penalty, a decision that was upheld by the Appellate Tribunal. The High Court found no error, illegality, or infirmity in the Tribunal's decision regarding the penalty. The Court stated that the Tribunal's order was based on valid evidence and materials, and it was not a perverse decision. As no questions of law were found to arise, the Court confirmed the Tribunal's decision to delete the penalty. In conclusion, the High Court dismissed the tax case revision filed by the Revenue, confirming the orders of the Tribunal regarding the deletion of assessment made on sales estimation and the penalty levied under section 12(3)(i)(b)(v) of the Act. The Court found no merit in the Revenue's arguments and upheld the Tribunal's decisions.
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