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2016 (7) TMI 855 - HC - VAT and Sales TaxDemand of VAT - higher turnover shown in the Income Tax Return - When the proprietor of the petitioner was questioned and the statement was recorded, it came to light that the returns indicating higher turnover were filed before the Income Tax Authorities only with an intention to receive a bank loan and that they did not represent the actual turnover of the petitioner for the relevant assessment years. - 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. 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.
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