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2023 (10) TMI 668 - HC - VAT and Sales TaxValidity of assessment order - correctness of re-computation of the gross profit - levy of penalty on the petitioner being double the amount of tax allegedly evaded by the petitioner - HELD THAT:- While it may be a fact that an estimation of gross profit has to be done on a scientific basis, inter alia by taking into account the profit earned through the sale of the various brands of IMFL dealt with by the petitioner, in the instant case, it is found firstly, that the estimation done by the Intelligence Officer in the penalty proceedings was not challenged by the petitioner in further proceedings. The Assessing Authority has merely adopted the same gross profit as was estimated by the Intelligence Officer and it is found difficult to accept an argument against such estimation in the assessment proceedings when there was no such dispute raised by the assessee against the estimation done for the purposes of penalty. Secondly, the estimation of gross profit by the Intelligence Officer/Assessing Authority has not resulted in the adoption of an unreasonably higher rate of gross profit than what was already conceded by the petitioner towards sales of IMFL and Beer. No doubt, in circumstances where the gross profit estimated by the revenue authorities is significantly higher than what is conceded by the assessee, and it is apparent that the estimation itself was done in an unscientific manner, it may be open to an assessee to challenge the same inter alia based on the decisions mentioned. On the facts of the instant case, however, there are no reason to interfere with the impugned order of the Tribunal. Revision dismissed by answering the questions of law raised therein against the assessee and in favour of the revenue.
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