2012 (11) TMI 130 - HC - VAT and Sales Tax

Additional tax incomplete accounts Held that - It is also not denied by the assessee that for a certain period between the month of August and October the accounts were not duly maintained, the reason being that their accountant was unwell. Nevertheless, it is not denied by them that for that period accounts were not maintained. Such being the case, the attention made by the Tribunal in the assessment of the Tribunal as well as the enhancement in the tax is justified - revision is dismissed

Summary

Issues:
Assessment of additional tax for the year 1997-98 based on incomplete accounts and survey findings.

Analysis:
The judgment pertains to a revision filed by M/s. Polytech Paints against an order imposing additional tax of Rs. 73,516 for the assessment year 1997-98. The assessee, engaged in the manufacture and sale of paints and varnish, had its books of account found incomplete during a survey conducted in 1999. The assessing authority estimated the turnover at Rs. 1,00,74,719, significantly higher than the assessee's disclosed turnover of Rs. 18,72,080. Subsequent appeals reduced the tax liability to Rs. 2,36,695. The counsel for the assessee argued that the progressive returns indicated no tax evasion, while the Department contended that the assessment was based on seized material and justified the enhancement. The Tribunal's final assessment was deemed just and reasonable, considering the seized material's value and the unavailability of accounts for a specific period due to the accountant's illness. The Tribunal's assessment, not a wild guess but based on actual findings, was upheld by the court, confirming the order and dismissing the revision.