2011 (1) TMI 1281

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..... m) and K.S. Hariharan Nair The judgment of the court was delivered by C.N. RAMACHANDRAN NAIR J.-This is a revision case filed by the State challenging the order of the Tribunal passed in the case of the respondent-assessee for the assessment year 2006-07. The respondent is running a jewellery shop selling gold and silver ornaments. The respondent claimed the benefit of payment of tax under the c .....

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..... rder of the Tribunal, the State has filed this revision contending that tax at compounding rate is payable based on highest tax returned for any of the years or the tax found as payable based on the assessment. 2. We have heard learned Government Pleader for the petitioner and learned counsel appearing for the respondent-assessee. 3. The relevant provision under which the assessment has to be ma .....

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..... ts under this Act or under the Kerala General Sales Tax Act". It is pertinent to note that the above section does not provide for reckoning the assessed tax as the basis for payment of tax at compounded rate. On the other hand, what is stated is that the assessee should pay tax at compounded rate, i.e., 200 per cent of the highest tax payable by the assessee for any of the consecutive three preced .....

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..... sessee in the return filed, and the Tribunal found, among the three years the highest tax returned by the assessee as payable in the return filed is for the year 2005-06. Therefore, the Tribunal directed the assessing officer to demand tax at compounded rate for 2006-07 at 200 per cent of the tax payable for the year 2005-06. Even though learned Government Pleader submitted that the tax assessed .....

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..... le under the accounts, then such amount of tax as disclosed in the return has to be reckoned for the purpose of assessment of tax at compounded rate for the relevant year. So long as the provision in the statute does not provide for assessment of tax at compounded rate based on the tax assessed or demanded for any of the preceding three years, the Department cannot raise such a contention before t .....

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