9911796707
TMI Blog2025 (2) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... account, without any independent finding - estimating the sale turnover by adopting the turnover at 8% as gross profit as the benchmark without any comparable data - benefit of the sub clause (3) of Section 25AA of the KVAT Act - HELD THAT:- Section 25 (1) of the Kerala Value Added Tax Act, 2003 prescribes the power of the assessing authority to complete the assessment on best judgment basis, if it is found that any income has escaped the assessment. It is now trite law that even when an intelligence officer initiates proceedings for penalty under Section 67 of the KVAT Act and finalises a report, the said report cannot form the basis of reopening of the assessment. The above principle equally applies to the proceedings initiated under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isposal of the revision are as follows: The revision petitioner is an assessee on the rolls of the Sales Tax Office, Pattambi. The petitioner filed annual returns for the year 2012-13 disclosing a total sales turnover of Rs.1,20,06,408/-. The return was rejected, and the assessment was completed on 31.12.2016. The reason for the rejection of the annual return was that the assessee in the statement of income and expenditure for the said year had conceded other income amounting to Rs. 1,20,34,317/- and out of this amount, an income of Rs. 1,17,17,362/- had been offered before the Income Tax Department as a result of the survey conducted by the said Department. As the figures were mentioned in the statement of income and expenditure pertainin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss account and assessed under head 'Income from Other Sources' as per the provision of Income Tax Act 1963, can be utilized to estimating the sales turnover for the purpose of assessment under the Kerala Value Added Tax Act? 3) Whether the assessing authority was correct in estimating the sales turnover from the income disclosed under the head 'Income from Other Source' in the trading profit and loss account, without any independent finding and without any proof of stock variation or incorrect books of account especially when the petitioner has discharged the initial burden of proof? 4) Whether the authorities below were correct estimating the sale turnover by adopting the turnover at 8% as gross profit as the benchmar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... completed purely on surmises and conjectures, which is impermissible and the said infirmity was not properly considered by the first appellate authority as well as by the tribunal. 6. On the other hand, Smt. Resmitha Ramachandran, the learned Government Pleader, supported the findings of the authorities and said that all three authorities have concurrently found that the income shown in the returns filed under the Income Tax Act, 1961 is the income derived through the sale of gold ornaments and, therefore, the Revenue is entitled to demand tax on the sale of the goods. It is also pointed out that the statements of six persons, who are stated to have extended unsecured loans, were considered by the authorities and found that there were disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered in proper perspective by the first appellate authority as well as by the appellate tribunal. 10. In M/s. Girdhari Lal Nannelal v. Sales Tax Commissioner, M.P [(1976) 3 SCC 701], the Hon'ble Supreme Court considered the question as to whether acquisition of money by the assessee from other sources could be taxed or not. It was held that for the purpose of income tax, it may in appropriate cases be permissible to treat unexplained acquisition of money by the assessee to be the assessee's income from undisclosed sources and assess him as such. As against that, for the purpose of levy of sales tax it would be necessary not only to show that the source of money has not been explained but also to show existence of some material ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
