Tax Management India. Com TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals News SMS Articles Highlights
← Previous Next →
  • Contents
  • Cases Cited


User Login
Stay sign in     

Forget password        New User/ Regiser


2018 (2) TMI 450

Head Note:
Liability of interest - on increased tax liability due to rectification of assessment proceedings - Section 12-B(2) of the Karnataka Sales Tax Act, 1957 - Revenue is claiming interest under Section 12-B (2) of the Act based on the rectification orders passed under Section 25-A of the Act, rectifying the assessment orders - Held that: - Section 12- B(1) of the Act deals with the payment of tax in advance according to which every dealer is required to file monthly returns to the assessing authority including the taxable turnover during the preceding month and shall pay in advance the full tax amount payable by him within 20 days after the close of the preceding month to which tax relates.

There is no short payment of tax in terms of the monthly returns filed. If so, initiating proceedings under Section 12-B (2) of the Act to claim interest on the rectification orders passed subsequent to the assessment orders is unjustifiable - it is clear that when the assessee pays the tax which according to him is due on the basis of the information made in the return filed by him, it is highly unrealistic to expect him to pay the tax on the basis of final assessment done by the assessing authority. The assessee cannot predict the liability accruing on the basis of the rectification proceedings initiated subsequent to assessment proceedings.

Revision petition dismissed.


← Previous Next →




Discussion Forum
what is new what is new

Let's just recapitulate:

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.