TMI Blog2011 (7) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... market is evident from the fact that Petitioner has "nil" closing stock. Assessing Officer, first Appellate Authority as well as the Tribunal rightly rejected the sales turnover declared by the Petitioner which was below the value declared at the entry Check Post where tax was paid on all consignments brought and sold in Kerala Estimation of gross profit - Tribunal adopted lower than the lowest percentage of gross profit declared by similar dealers – Held that:- gross profit addition is made to the purchase value declared by the Petitioner which is admittedly not the real purchase value but the value fixed by Petitioner. Tribunal's order that they have considered the market value of each and every variety of timber transported and sold by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance tax is based on the value fixed by the Commissioner through a Circular for various varieties of timber like teak, Purple heart, Pin coda etc. The Petitioner without any contest remitted tax at the Check Post on the entire loads of timber brought to Kerala during 2006-07. However, after remittance of tax at the Check Post, the Petitioner claimed refund of substantial amount of Rs. 3,33,531 in the returns filed stating that goods brought were sold at 3 per cent above the purchase value. The Assessing Officer conducted enquiry and noticed that similar dealers selling imported timber have declared gross profit of 12.9 per cent to 14 per cent and therefore, he rejected the return and made an addition of the minimum margin of 12 per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it to the purchase value declared by the Petitioner. Government Pleader on the other hand submitted that the assessment is quite reasonable and in fact favourable to the Petitioner because purchase value declared by him is accepted by the department even though Petitioner was not engaged in any purchase of goods in India and purchases are only made from abroad, the value of which is not accounted in Kerala. The further contention made by Government Pleader is that without any contest Petitioner paid tax at the Check Post based on the value of the commodity declared by the Commissioner vide Circular relied on in the Tribunal's order and after bringing and selling the goods in Kerala and after disabling the department to verify the type or qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eptable in law. Admittedly, the Petitioner has no opening stock or closing stock which means that the imported timber brought to Kerala were sold like hot cakes in full truck loads without even unloading in his business place. Construction industry has been booming in Kerala for several years and Kerala is a major market for timber imported from Malaysia and Burma. In order to control the evasion of tax taking place on the sale of imported timber in Kerala, the Commissioner issued a circular by which every dealer bringing timber to Kerala is required to pay advance tax at the Check Post on the value of the timber fixed in the circular issued by him. Admittedly, the Commissioner has taken into account the market value of various varieties of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clared in the document is far less than the market value which is the main conclusion drawn by the Tribunal justifying addition to the declared turnover. When purchase value accounted by the Petitioner itself is not purchase value but is a value declared by the Petitioner in the transport document for transporting stock from his own go down in Tamil Nadu to Kerala, we feel there is nothing wrong in the Assessing Officer making gross profit addition to the same for assessment, particularly because Petitioner paid tax on a higher value at the Check Post on consignments brought to Kerala. On going through the Tribunal's order, we find that the Tribunal has taken note of the fact that the value fixed by the Commissioner for different varieties ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
