Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 382 - ITAT RAJKOTReopening of assessment - suppressed sale - AO has concluded that the show cause notice issued by the Excise Department is foolproof and substantial material evidence of suppression of sales - Held that:- Conclusion of the AO is contrary to the decision of the Futura Ceramics Pvt. Ltd. Vs. State of Gujarat, [2012 (12) TMI 955 - GUJARAT HIGH COURT] wherein, while deciding the issue under VAT Act on a similar show cause notice issued by the Central Excise Authority has held that merely because the Excise Department issued a show-cause notice, that cannot be a ground to presume and conclude that there was evasion of excise duty implying thereby that there was also evasion of tax under the VAT Act. It is not even the case of the Department that such show-cause notice proceedings has culminated into any final order against the petitioner. We wonder what would happen to the order of reassessment, if ultimately the Excise Department were to drop the proceedings without levying any duty or penalty from the petitioner. Further, the show cause notice issued by the Excise Department contains the allegation of the Excise Department that the assessee has suppressed sales for the purpose of making payment of excise duty. A perusal of recorded reasons does not show that the AO verified the particulars declared by the assessee in its income-tax return. Nowhere in the recorded reasons, the sale declared by the assessee in its income-tax return, has been brought on record. The AO, as per the recorded reasons, has not verified the income-tax return of the assessee vis-à-vis the alleged escapement of income to arrive at the satisfaction to the effect that the assessee has not disclosed such income in the return of income, and has concluded that the alleged sales, on which the excise duty was allegedly not paid by the assessee, was income chargeable to income-tax, and has escaped the assessment under the Income Tax Act. - Decided in favour of assesse.
|