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TMI Blog2016 (7) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... vade taxation, he can do so. In the light of the above, the petitioner's right to establish before the Assessing Officer by producing records to show that there was no sales suppression, cannot be foreclosed merely on the ground that he had reported higher turnover in the income tax returns. Considering the facts and circumstances of the case, this Court is inclined to give one more opportunity to the petitioner to produce necessary records before the respondent to establish the actual sales. - Matter remanded back. - Writ Petition Nos. 24216 to 24219 of 2015 & MP.Nos.1, 1, 1 and 1 of 2015 - - - Dated:- 14-6-2016 - T. S. Sivagnanam, J. For the Petitioner : Mr.N.Murali For the Respondent : Mr.Manohar Sundaram, AGP ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. However, along with the notices, the orders of assessment dated 18.10.2013 were passed and communicated to the petitioner. Therefore, the petitioner approached this Court challenging the orders of assessment on the ground that the petitioner had no opportunity to file their objections to the notices dated 8.9.2013 and that the assessment orders, having been passed without affording an opportunity to the petitioner, are liable to be set aside. 5. The writ petitions filed by the petitioner earlier in W.P.Nos.1350 to 1353 of 2014 were disposed of by a common order dated 21.3.2014 by directing the petitioner to submit their objections to the pre-assessment notices within a stipulated time and on receipt of the same, the respondent was dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. The Assessing Officer, after affording an opportunity of personal hearing, framed the assessments by orders dated 7.7.2015 and 8.7.2015, which are impugned in these writ petitions. 9. On a perusal of the impugned orders of assessment, it is seen that the only reason for confirming the proposals in the pre-assessment notices is on the ground that the petitioner has not been able to produce any documentary evidence in proof of their contention that the sales reported in the balance sheet for income tax purposes was inflated for them to avail a bank loan. 10. The petitioner's case is that he is an illiterate person and not aware of the procedure and the documents, which he has to produce before the Assessing Officer to convinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no sales suppression ? and (ii) whether the Appellate Tribunal was correct in confirming the levy of tax on the petitioner assuming that the transaction per se (bill discounting) is a sale, as then the liability to sales tax would be on the first seller and not the petitioner ? 12. In the said decision, this Court took into consideration the factual aspects, verified the records and held as follows : Thus, with the available materials, when we looked at the facts of the case, it is evident, particularly from the confirmation letters of the Indian Bank, as regards the granting of credit in favour of the suppliers and the bills discounted for the purchase of raw films by the assessee. The assessee had noted this transaction as loa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Authorities. 14. At this stage, it would be beneficial to refer to the decision of this Court in the case of State of Tamil Nadu Vs. Indian Crafts and Industries [(1970) 25 STC 466] wherein the Hon'ble Division Bench held that the morality and intention of an assessee does not enter into the field of adjudication in taxing law and that if an assessee can, by a process, which is acceptable in law, avoid or evade taxation, he can do so. 15. In the light of the above, the petitioner's right to establish before the Assessing Officer by producing records to show that there was no sales suppression, cannot be foreclosed merely on the ground that he had reported higher turnover in the income tax returns. Considering the facts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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