Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 207 - MADRAS HIGH COURTReopening of assessment - AO disallowed a sum being the difference in SPF [Special Privilege Fee] paid and admissible - Held that:- Special Privilege Fee which was revised by subsequent Government Orders substitutes the rates fixed in the earlier Government Order, therefore, it is untenable on the part of the Revenue to contend that they will consider as to whether the claim of additional vend fee amounting to ₹ 435,17,13,674/- is admissible or not. The fundamental error which has crept in on account of usage of wrong terminology. The Prohibition Act and the Rules framed thereunder have fixed a fee payable by the petitioner corporation to the Government and this is termed as the Special Privilege Fee payable on account of special status given to the Corporation with regard to distribution of sale of IMFL in the State of Tamil Nadu. Assessing Officer enquired and passed an assessment order allowing the relief. Subsequently the assessment was reopened and an order was passed. This order was tested and ultimately a decision was arrived in favour of the assessee. The only issue to be decided is Special Privilege Fee payable by the petitioner. This has been dealt with by the Tribunal in the assessee's own case for the current assessment year as well as earlier and held that the subsequent Government orders will have to be taken into consideration for arriving at the SPF payable for the said year. No further enquiry is required or any verification is required as only the legal interpretation to be given is to the effect of the subsequent Government Orders which have been held to be substitutive in nature, therefore deemed to be retrospective with effect from issuance of the first Government Order. The show cause notices are without jurisdiction and not sustainable in law.
|