9911796707
TMI Blog1996 (4) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... d on payment of tax at 4 per cent. 3. As far as the present proceedings under section 41(1) of the Kerala General Sales Tax Act, 1963, is concerned it is limited to two items, because the Assistant Commissioner (Assessment) by the order dated July 28, 1989 in regard to the above two items made the following observations on scrutiny of accounts in the following manner: "1. The commission of Rs. 55,000 has been paid to one Srinivasan, i.e., Rs. 25,000 on April 3, 1987 and Rs. 30,000 on July 17, 1987 as per vouchers 7 and 98. The vouchers have not been produced for verification. The nature of commission paid is not ascertainable. The corresponding sale has not been accounted. The sale on this account is proposed to be estimated at 10 times t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Sales Tax (Appeals) in the order dated August 28, 1990, has considered these aspects independently. It has also taken into consideration that if Sri Srinivasan is the son-in-law of one of the partners there has to be some material if the payment is considered as commission and not ex gratia payment. In fact the appellate authority has referred to the receipts issued by Srinivasan and Udayakumar showing that the amount received by them was towards commission account. The first appellate authority found the contents of the receipt in contradistinction with the plea of it being ex gratia payment. The first appellate authority has also considered the second aspect relating to an amount of Rs. 13,893 in a similar manner appreciating the import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derstood otherwise in any manner and never to mean ex gratia payment as sought to be contended. In such a situation where factually all that occurs is immediate, inevitable and necessary inference of the term commission in relation to the sales in the context. It is impossible to consider the use of the word commission as synonimous in any manner with ex gratia payment as is sought to be contended. In fact the use of the word independently in the documentary evidence and that too emanating from close relations such as Srinivasan, the son-in-law of the Managing Partner Mr. Nagarajan and Mr. Udayakumar who is none else than the brother of Mr. Srinivasan. It cannot be even imagined that the word commission has been used as a misnomer to the si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are self-explanatory needing no explanation or any occasion in regard thereto. The Tribunal has further observed that the factual matrix is the situation of the natural inference relating to the corresponding sales. It is further observed in its pungent way that to understand commission as ex gratia payment is so hard that it is not possible to have a track on its consequence. 11.. The Tribunal has also considered, with regard to the addition of Rs. 13,893 the vital aspect that the two payments are by cheques relating to Messrs. Jyothi Traders. It has observed pinpointedly that at least in regard to the payment received in cash the same could have been handed over to the sister concern in trust. 12.. In view of the above situation apart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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