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2007 (12) TMI 436

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..... appellate authority appears to be correct.In the facts and circumstances of the case the Tribunal erred in accepting the turnover shown before the bank to be the actual turnover of the dealer. The revision accordingly succeeds and is allowed. The order of the Tribunal is set aside and that of the appellate authority is maintained. - - - - - Dated:- 20-12-2007 - VIKRAM NATH , J. VIKRAM NATH J. The dealer has filed this revision under section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as, the Act ) against the judgment and order of the Trade Tax Tribunal, Aligarh dated June 28, 2006 whereby the second appeal filed by the Commissioner of Trade Tax, U.P. has been partly allowed and tax liability of Rs. 3,23,397 ha .....

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..... r reassessment under section 21 of the Act be not initiated. The dealer submitted a reply and explained that the returns filed before the bank had been substantially enhanced and depicted projected figures in the balance sheet, in order to obtain house building loan and also to increase his cash credit limit. Along with his explanation the dealer also furnished an affidavit and a certificate from the bank that the dealer had availed housing loan and the cash credit limit of more than 5.5 lakhs. The assessing authority disbelieved the explanation of the dealer and determined the taxable turnover at Rs. 57,34,934 and accordingly imposed a tax liability of Rs. 3,55,397.24 vide order dated September 30, 2005. The dealer preferred an appeal. .....

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..... d figure of turnover in the balance sheet. It has further been submitted by Sri Saxena that apart from the balance sheet submitted before the bank there was no other material with the department to prove that there have been any actual transaction by the dealer in excess of returns declared by the dealer before the department. He further submitted that the appellate authority had accepted the explanation of the dealer after considering other material evidence with regard to actual payment of telephone and electricity bills whereas the Tribunal without looking into those aspects of the matter and without upsetting the finding and meeting out the reasons of the appellate authority has affirmed the turnover determined by the assessing autho .....

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..... In a given case it may be true that the party may project higher and enhanced figure to obtain loan from the bank. It is not unusual. The question would be to find out as to whether the figures mentioned before the bank depicted the actual turnover and the said party has suppressed its turnover before the department or the party had declared the correct figure of turnover before the department and had projected the imaginary figures before the bank to avail higher limit. From a perusal of the reassessment order of the assessing authority and the order of the Tribunal it is apparent that the reassessment order has been passed only on the basis of the figures disclosed before the bank. No other material was found. No supporting evidenc .....

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..... to show that the surrendered income relates to the business activity of the dealer. There is one more aspect of the matter. The appellate authority had relied upon the actual payments made by the dealer with regard to the telephone and electricity bills and it had noticed that figures projected in the balance sheet before the bank depicted much higher figures of the electricity and the telephone bills and actually such bills had never been raised by the telephone or the electricity department. It had, therefore, accepted the explanation of the dealer that the turnover shown before the bank was exaggerated. One more aspect ought to have been looked into which is the previous turnover in the return of the dealer. The assessing authority i .....

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