Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2018 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 297 - HC - VAT and Sales TaxLiability of Sales tax - transaction of sale taking place or not - source of miscellaneous income not proved - addition made on Gross Profit - Held that:- Unless there was sufficient material to show that a particular transaction was one of sale of goods, there could be no turn over addition made for the purpose of imposition of Sales Tax. For the purpose of levy of sales tax, it would be necessary to show not only that the source of money has not been explained but also the existence of some material to indicate that the acquisition of money by the assessee has resulted from transactions liable to sales tax and not from other sources. The assessee herein had taken a specific contention with respect to the miscellaneous income being income generated from real estate business; which could be easily proved by production of documents. The assessee having failed to so prove the transactions which geerated the income, with documents and materials available with the assessee, the Assessing Officer was perfectly justified in drawing an adverse inference - decided in favor of Revenue. Addition made on Gross Profit - Held that:- The books of accounts shows the amounts as miscellaneous income. The income if derived from the dealership, would definitely include gross profit. The addition made of gross profit, to the income disclosed, is not sustainable - decided in favor of Assessee. Decided partly in favor of Revenue.
|