2022 (11) TMI 286 - HC - CST, VAT & Sales Tax
Validity of assessment order - enhancement of gross turnover - petitioner contended that Assessing Officer, by merely taking into consideration one or the other figures from books of account of the petitioner, have alleged concealment of sales without any evidence - HELD THAT:- It is an admitted fact that the Assessing Officer has accepted the books of account of the petitioner and, in the Assessment Order, no adverse evidence has been recorded demonstrating concealment of sale. However, the Assessing Officer, by comparing the Statement of Sales as reflected in the books of account (Annexure-5 at page 61) with the Consumption account (at Page 45) treated the difference of the amount of Rs. 10,46,08,885.86 (-) Rs. 9,63,41,597 = Rs. 82,67,288.86 as the concealed sale turnover of iron ore. From the Tax Audited Report submitted to Income Tax Department (Annexure-4), it would be evident that cost of goods sold was clearly reflected as Rs. 10,46,08,886/-, whereas, from the Sales Statement, it was evident that said goods were sold at Rs. 9,63,41,597/-. Thus, the differential amount was not the concealed sales amount of the petitioner, but was the loss suffered by the petitioner on sale of iron ore, which is evident from the books of account of the petitioner itself.
The Assessing Officer, on one hand, treated the loss suffered by petitioner as concealed sale amount of iron ore, and, on the other hand, by comparing the gross profit shown in books of account of the petitioner, and, by stating, inter alia, that gross profit has been shown less by the exact amount of Rs. 82,67,288/-, proceeded to levy tax again on the said amount by treating it as concealed sale. It appears that the Assessing Officer has completely misconceived itself while passing Assessment Order, as, on one hand, the loss suffered on sale of sponge iron was treated as concealed sale amount, and, on the other hand, exact sale figure was treated to be the concealed sale amount of sponge iron by stating, inter alia, that petitioner has shown less gross profit in the books of account.
The order passed by Revisional Authority dated 07.03.2017, Appellate order and Assessment Order including consequential Demand Notice dated 02.02.2011are, hereby, quashed and set aside - matter is remanded to the Assessing Officer to pass de novo Assessment Order after giving opportunity of hearing to the petitioner and further to enable the petitioner to explain the figures mentioned in its books of account.
Petition allowed by way of remand.