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2019 (7) TMI 194 - HC - VAT and Sales TaxRejection of Books of accounts - rejection on the basis of surmises and conjectures - Whether even otherwise the selling rate of coal could have been enhanced by making addition to the freight charges in absence of any material in support thereof? - HELD THAT:- Perusal of the assessment order reveals that the reason for making the enhancement to the freight charges is only one, being non-production of part freight receipts. Even if that reason can be accepted as a reason to make the estimation, the assessment order does not disclose the basis on which the enhancement had been made to the freight charges. Neither there is any exemplar relied upon by the Assessing Authority nor there is any intimation received from the seller or transporter or railways in support of the conclusion reached with respect to suppression of the freight charges - answered in the negative i.e. in favour of the revenue and against the assessee. HELD THAT:- It is vital in the facts of the present case that the entire quantities of coal had been produced by the assessee from a single purchaser from M/S Bharat Coking Coal Ltd., Dhanbad. Some freight receipts had also been produced by the assessee disclosing the freight charges paid to that seller that have not been doubted or disbelieved. The Assessing Authority could not have recorded a subjective satisfaction that there was suppression of freight charges. The same mistake has been committed by the first appellate authority in affirming the findings with respect to suppression of freight charges - The enhancement made on account of freight charges is clearly unsustainable as it is not based on any material or valid consideration. Rather, the same is found to have been made on purely subjective satisfaction devoid of any evidentiary basis - answered in the negative i.e. in favour of the assessee and against the revenue. Revision allowed in part.
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