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TMI Blog2020 (11) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the statutory provision is unassailable and the first question has to be answered in favour of the Revenue and against the assessee. Whether after filing a revised return including the undisclosed purchases there could have been a best judgment assessment carried out by the assessing officer? - HELD THAT:- It was rightly found that the filing of a revised return, after finalisation of penalty proceedings, payment of compounding fee as also the tax shortfall with interest would not absolve the assessee from a best judgment assessment if there is a pattern of suppression detected. On facts, it was found that the suppression was substantial amounting to more than ₹ 10,00,000. This alone would lead to a valid inference of a pat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in brief are that the assessee running a restaurant applied for and was granted compounding under section 8(c)(1) of the Kerala Value Added Tax Act, 2003 (for short, the KVAT Act ). An inspection conducted by the intelligence squad revealed undisclosed purchase of chicken amounting to ₹ 10,34,210. The assessee paid the compounding fee with respect to the penalty proceedings and filed a revised return including the tax and interest payable thereat. The assessing officer cancelled the compounding permission and carried out best judgment assessment. On best judgment equal amount was added for direct expenses and 50 per cent for other ingredients. Gross profit was computed at 20 per cent. The first appellate authority made some modific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax under section 8(c) they shall be assessed at the applicable compounded rate by adding 25 per cent of the suppressed turnover and in such cases option of compounding shall not be cancelled. The learned counsel prays for a remand so that the beneficial provision could be applied. Section 25AA is introduced in the KVAT Act after the KVAT regime has ended. It can only apply to pending assessments or assessments directed to be redone in appeal or revision. Where the cancellation is carried out and the assessment is concluded on a best judgment basis there can be no remand made for applying the beneficial provisions; if the cancellation and regular assessment carried out are unassailable. In the present case, we have upheld both the cancella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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