9911796707
TMI Blog2018 (12) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... had granted an opportunity to the assessee to produce books of accounts and the agreements evidencing the turnover, of the contracts awarded to the assessee. The assessee had failed to produce the same. It was in such circumstances that the Assessing Officer had made an addition for probable omission and suppression. The addition made for probable omission and suppression would be akin to the addition made on an actual detection of suppression; especially when it is on account of failure of the assessee to produce the books of accounts - The Tribunal had merely noticed that there was no reason to discredit the compounding permission granted and that alone would not be sufficient ground to delete the addition made by the Assessing Officer o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/-; an equal addition. In the process of making the assessment, the Assessing Officer merely proceeded for regular assessment without taking into account the permission granted for compounding. In appeal, the First Appellate Authority dismissed the appeal and the assessee was before the Tribunal. Before the Tribunal, the contention raised by the assessee was that the contracts entered into by the assessee were labour contracts and they were entitled to exemption. The Tribunal found that such a stand cannot be taken at this point and that the assesssee is bound by the terms of the compounding permission granted in the application of the assesee. The Tribunal found that the binding nature of the compounding permission is applicable to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication especially after the assessment year is over. Further but for the bland assertion the assessee produced nothing to substantiate the contention of labour contracts. In such circumstance, we reject O.T.Rev.No. 7/2016. 6. On the question of law raised by the State in its revision it has to be noticed that the Assessing Officer had not attempted to cancel the compounding permission granted to the assessee. On notice issued and the failure of the assessee to produce the books of accounts the Assessing Officer had straight away proceed to assess under the regular scheme, totally ignoring the compounding permission already given. The assessee had filed returns and had paid tax at the compounded rate at least on the conceded turnover as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e estimation made, the tax would have to be levied at the regular rates. In that context, necessarily deductions have to be made under Rule 10 of the Kerala Value Added Tax Rules, 2005 for which alone the matter is remanded to the Assessing Authority. We hence answer the question of law framed partly in favour of the State and partly in favour of the assessee. O.T.Rev.No. 138/2015 is partly allowed restoring the estimation made but however, making it clear that for the conceded turnover, tax would be levied under Section 8 and for the quantum made addition of; tax would be levied at the regular rate but after giving deduction under Rule 10 of the KVAT Rules. Parties to suffer their respective costs. - - TaxTMI - TMITax - CST, VAT & ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
