9911796707
TMI Blog2014 (7) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... ealer has filed his statement of turnover for each tax period in the year 2006-07. The assessee also undertakes catering of food to information technology units in Bangalore. The dealer has opted for composition of tax. The total turnover for the assessment year 2006-07 declared by him is Rs. 3,30,56,451. The assessment was concluded on June 30, 2009. There was a survey of his premises by the officers of the Income-tax Department on September 22, 2006. In the course of survey, they noticed the total sales of the assessee was Rs. 35,000 per day under which event, the total turnover cannot be more than Rs. 1,25,00,000 whereas the assessee has filed a return showing Rs. 3,30,56,451 as the total turnover. The said discrepancy was brought to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred under section 63 of the KVAT Act, 2003 issued notice to assessee proposing to determine the total taxable turnover at Rs. 1,63,82,507 for the tax paid on March 2007 and proposed to levy composition tax under section 15 of the Act at four per cent on the same. On receipt of notice, the assessee filed her objections stating that the proposals made are illegal and untenable. It was contended that the income-tax authorities have disallowed expenditure and hence, net-profit is enhanced by Rs. 8,00,000 but have not enhanced the sales turnover or purchase turnover. Though this amounts to suppression under the Income-tax Act, it is not suppression under the KVAT Act, 2003. The net-profit calculated is for the entire year 2006-07 but not for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the assessee preferred an appeal to the Karnataka Appellate Tribunal. The Appellate Tribunal, on careful consideration of the entire material on record, however, referring to the various judgments relied on by the party, held the addition made by the revisional authority is not based on estimation, but is made on admitted income on the basis of which he has calculated the total turnover and has imposed tax, which is legal and valid and therefore, it declined to interfere with the order passed by the revisional authority. Aggrieved by the said order, the assessee has preferred this revision petition. The learned counsel appearing for the assessee assailing the impugned order contends firstly that the addition made by the income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show that the source of money has not been explained but also to show the existence of some material to indicate that the acquisition of money by the assessee has resulted from transactions liable to sales tax and not from other sources. In the instant case, the statement given by the assessing authorities during survey, makes it very clear that she is offering Rs. 8,00,000 as additional net income for the assessment year 2006-07 in addition to the regular income and for the assessment year 2007-08 she will show a higher income taking into account higher sales noticed during survey and higher tax paid accordingly. Therefore, from the aforesaid admission, the only source of income of the assessee is from carrying on this hotel business and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rawn. Again in the facts of this case, the profit from the unaccounted sales is admitted by the assessee as aforesaid and she had income only from hotel business and therefore that was made the basis for levying tax under the Act. Therefore, the said judgment also has no application to the facts of this case. Reliance is also placed on the judgment of the Madras High Court in case of Reliance Motor Company Private Ltd. v. State of Tamil Nadu reported in [1992] 84 STC 201 (Mad) where it was held that the Joint Commissioner, under section 34 of the Tamil Nadu General Sales Tax Act, 1959 had no jurisdiction to bring to tax for the first time, turnover which has allegedly escaped assessment, when it was neither the subject-matter of assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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