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2020 (8) TMI 219 - HC - VAT and Sales TaxValidity of Estimation of turnover - estimation made purely on assumptions and presumptions and not on the basis of any material - HELD THAT:- There is no material available to the Assessing Officer as to any brand having been sold at a higher rate than that disclosed in the bills. What was before the Assessing Officer was only the actual invoices from which two of the highest in the respective licensed premises were picked up to compute the average for the purpose of estimation. We do not think that the Assessing Officer adopted a rational basis for making such estimation when admittedly the assessee had sold different brands which have different purchase value; as seen from the sale value disclosed in the sale invoices. The assessee sells liquor on retail, after purchasing the same from the Kerala State Beverages Corporation. The purchase value cannot be a reference to decide on the assessee's sale price since the assessee offers a premises for the customer to consume alcohol. The estimation has been made on mere surmises and conjectures. There is absolutely no rational basis to reject the books of accounts and the estimation made has no nexus to the nature of the business and transactions carried out in the two licensed premises of the assessee - revision allowed - decided in favor of assessee.
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