TMI Blog2012 (8) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee is a dealer in ice creams, registered under the Kerala Value Added Tax Act, 2003, hereinafter referred to as the Act , and who has opted for paying tax under Section 6(5) of the Act. Section 6(5) provides payment of presumptive tax at the rate of 0.5% by such dealers as specified therein, whose total turnover for an year is below ₹ 50 lakhs; the limit being so for the respective assessment years. 3. In the year 2006-07, the assessee conceded a turnover of ₹ 21,95,176.60. The returns filed by the assessee disclosing the above turnover was rejected, inter alia, on the basis of the proceedings initiated by the Intelligence Wing of the Department for suppression of purchase, which offence was compounded by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has raised a number of questions of law in the above revisions as arising from the order of the Tribunal. Since the revisions are heard at the stage of admission itself, we do not propose to frame any question of law. The issue that comes up for consideration in the above revisions is essentially the legality of the best judgment assessment made on the ground of offences detected and compounded and the denial to the assessee the benefit of payment of tax under Section 6(5) of the Act. 6. The claim of the assessee that he ought to have been continued as a presumptive dealer, entitled to payment of tax at 0.5%, and the claim for input tax credit is mutually destructive. A presumptive dealer could not claim input tax credit as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment and the exercise so carried on in this case cannot at all be termed to be in excess of the jurisdiction or perverse. The assessing authority cannot be said to have exercised its power to make best judgment assessment improperly. 8. The next issue would be the assessee being made liable under Section 6(1) rather than under Section 6(5). Admittedly the assessment made would render the assessee's turnover having exceeded the limit as prescribed under Section 6(5). The addition made on best judgment is the turnover of the assessee that ought to be considered for the purposes of assessment under the provisions of the Act. There can be no distinction between actual suppression and the additions made on probable omissions and suppr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11; in the following lines: Provided also that notwithstanding anything contained in the Act or rules made thereunder, if the turnover of a dealer, who opted for payment of tax under this sub-section, has exceeded the turnover limit during the course of an year, he shall be eligible for input tax credit on the turnover in excess of sixty lakh rupees . The said proviso is sought to be given retrospective effect with effect from 1.4.2005 by Kerala Finance Bill, 2012. The said proviso is in tune with the scheme of presumptive tax and lends credence to our understanding; stated above. It was the assessee who chose to suppress its turnover for the purpose of remaining within the presumptive net paying tax only at the rate of 0.5%. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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