9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 668 - HC - VAT and Sales TaxSuppression of sales turnover - estimation suppressed turnover - ad-hoc addition of 20% - Held that - Mere one day sales could not be attributed to estimate the whole year without considering the festival season, rainy season and other natural calamities. It is also seen that the first Appellate Authority as well as the second Appellate Authority had considered all the relevant materials and came to the correct conclusion. The Assessing Officer had only relied on the one day sale for making estimation. The Tribunal is correct in holding that the Assessing Officer was wrong in estimating the additions which was solely based on one day sales. - Decision in the case of New Kamaliya Hotel s 2006 (3) TMI 689 - MADRAS HIGH COURT followed - Decided against the revenue.
Issues:
1. Assessment of turnover for food and drinks. 2. Assessment of turnover for sale of audio cassettes. 3. Legality of estimation based on one day sales. 4. Judicial discipline in similar cases. Analysis: Issue 1: Assessment of turnover for food and drinks The Tax Case (Revision) was filed by the Joint Commissioner against the order made by the Tamil Nadu Sales Tax Appellate Tribunal regarding the assessment of Saravana Stores (Fast Food) for the year 2004-05. The original assessment was revised by the Assessing Officer based on suppression noticed during an inspection. The Appellate Deputy Commissioner reduced the turnover for food and drinks to 20% of the reported turnover, citing lack of scientific method in the estimation. The Tribunal dismissed the appeal, leading to the present petition. Issue 2: Assessment of turnover for sale of audio cassettes The assessment for the sale of audio cassettes was also disputed in the case. The Appellate Deputy Commissioner reduced the suppressed turnover for audio cassettes, and the Tribunal upheld this decision. The petitioner questioned the tribunal's acceptance of the reduction without considering the total suppressed turnover. Issue 3: Legality of estimation based on one day sales The main contention revolved around the legality of estimation based on one day sales. The petitioner argued that the one-day sales turnover formed the basis of the estimation and should not be the sole criterion. The court referred to a previous judgment in a similar case, where it was held that one-day sales do not provide a scientific basis for estimation and should consider various factors like auspicious days, festivals, and natural calamities. Issue 4: Judicial discipline in similar cases The petitioner raised concerns about judicial discipline, citing a previous case where a similar issue was allowed by the Sales Tax Appellate Tribunal. However, the court emphasized that the decision in the previous case was not a scientific method and lacked substance, hence not applicable to the present case. The court reiterated that the basis of estimation should be in line with legal principles and not solely rely on one-day sales. In conclusion, the court dismissed the Tax Case (Revision) Petition, stating that no substantial questions of law were involved in the case. The court emphasized the importance of using scientific methods for estimation and upheld the decision based on legal principles established in previous judgments.
|
