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Issues:
- Claim towards sales returns remanded by High Court of Madras - Entitlement of a dealer to claim deduction of refunded sum from total turnover - Direction to consider claim of refund in each year separately - Agreement to remit matter back to AO due to voluminous nature of accounts - Remand of claims for specific years to CTO III/CAC Madras Analysis: The judgment by the Appellate Tribunal ITAT Madras pertains to five appeals remanded by the High Court of Madras concerning the claim towards sales returns. The High Court held that a dealer is entitled to claim deduction of the sum refunded by him from the total turnover in the year of refund, regardless of the original sale date or year. Consequently, the Tribunal's orders were set aside, and directions were given to consider the refund claims for each year separately and provide relief as per the law. During the re-hearing, both the appellants' counsel and the State Representative agreed to remit the matter back to the Assessing Officer (AO) due to the complex nature of the accounts and essential facts related to sales returns. The Tribunal concurred with this agreement and decided to remit the matter to the CTO III/CAC. The direction was to review the accounts and records and process the claims following the principles established by the High Court in a specific case reference. The claims for various years were listed, specifying the turnover amounts and applicable rates for each year. As a result, the claims for the mentioned years were remanded to the CTO III/CAC Madras for further consideration in compliance with the law. This decision underscores the importance of properly addressing sales return claims and ensuring that deductions are appropriately applied to the total turnover for the relevant year of refund, as directed by the High Court.
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