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Issues:
Appeals filed under s. 36(1) of the Tamil Nadu General Sales Tax Act, 1959 for asst. yrs. 1972-73 and 1973-74 disputing turnover amounts. Analysis: The appellant, a partnership firm manufacturing and dealing in printing inks, contested a turnover of Rs. 4,852.85 for 1972-73 and Rs. 2,000 for 1973-74. The assessing authority raised concerns regarding inter-branch transfer of goods and stock verification, leading to the rejection of the reported turnover. An addition was made to the turnover based on discrepancies in Form XX declarations. The AAC reduced the addition for 1972-73 to 1% and confirmed a lumpsum addition of Rs. 2,000 for 1973-74, despite acknowledging existing defects. For the asst. yr. 1973-74, similar defects were noted, with a proposed addition of 2-1/2% of disclosed sales. The AAC reduced the addition to Rs. 10,000 due to partially correct explanations provided by the appellant. The AAC confirmed a lumpsum addition of Rs. 2,000 for this year. The learned counsel and State Representative reiterated their arguments before the authorities. Upon review, the ITAT observed that the disputed additions were minimal compared to the appellant's turnovers. Stock records were claimed to be maintained by the appellant, but not adequately examined by the authorities. Variations in gross profit were deemed not abnormal. The primary defect identified was discrepancies in declarations related to goods movement. The ITAT found the appellant's explanations reasonable and the other defects minor. The authorities had not thoroughly verified the explanations provided by the appellant, indicating a lack of scrutiny. Consequently, the ITAT allowed the appeals, granting relief of Rs. 4,852.85 for 1972-73 and Rs. 2,000 for 1973-74 at 3-1/2% for both years. In conclusion, the appeals were allowed, and the appellants were granted the relief sought for the disputed turnovers for the respective assessment years.
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