9911796707
TMI Blog1983 (11) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Tax Officer, Chickmagalur, inspected the business premises of the petitioner and seized certain documents. He discovered that the petitioner has suppressed the sales turnover of Rs. 69,904 in respect of the furniture distributed under a gift scheme. He also found that the sale transaction to the extent of Rs. 34,983 was suppressed by the petitioner. Relying upon this material, the assessing authority completed the assessment under section 12(3) of the Act by determining the total and taxable turnover at Rs. 1,58,102 and Rs. 1,66,632 respectively with the levy of tax of Rs. 14,398 and imposition of penalty of Rs. 13,000 under section 12(4) of the Act. Being aggrieved by the assessment and penalty, the petitioner appealed to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has however reduced the penalty to Rs. 6,000. 3.. In this revision petition three contentions were urged by Sri S.P. Bhat, learned counsel appearing for the petitioner, first, regarding the tax levied on the transactions under the gift scheme; second, on the turnover determined on the basis of the entries in the seized book and third, legality of the penalty imposed. 4.. We will take up the first contention first for consideration. It will be necessary to refer to the terms and conditions of the benefit scheme promoted by the petitioner. The scheme is called "Group purchase benefit scheme for steel furniture". As many as 100 persons are to become the members in each group. Each member has to pay an amount of Rs. 20 on every 5th of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , included the value of the steel almirahs given to the remaining members of the benefit scheme at the rate of Rs. 400 per almirah. The Tribunal also agreed with this conclusion. 7.. Sri Bhat, however, urged that the scheme cannot be bifurcated as between the lucky winners chosen by lots and the unlucky members, who have to pay instalments for 20 full months. According to him the scheme should be considered as one and indivisible and if so construed the scheme would be in the nature of a lottery which does not involve any element of sale. 8.. It is true that in a lottery there is no sale or agreement to sell. It merely results in the distribution of articles to every member participating in the lottery scheme on the fulfilment of the te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed book exhibit P. 5. The total turnover on that basis was estimated at Rs. 34,983. The only contention urged by Sri Bhat in this context is that the assessing authority has taken into consideration even the cancelled orders and there is no evidence that those cancelled orders were executed by the petitioner. We have perused exhibit P. 5. We find that the petitioner has endorsed on some of the orders expressly stating as "cancelled". This claim was rejected by the Deputy Commissioner and the Tribunal on the ground that the petitioner has not produced proof of cancellation. We fail to understand why there should be further proof when the order book itself specifically mentions the cancellation of some of the orders. 11.. We have the assist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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