TMI Blog2011 (6) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... or reduction of penalty which could have been considered, if the petitioner offered suppressed turnover for assessment and remitted the tax without contest. Consequently, there is no scope for reduction of penalty. Revision dismissed. - O.T. Rev. No. 56 of 2010 - - - Dated:- 20-6-2011 - RAMACHANDRAN NAIR C.N. AND BHABANI PRASAD RAY JJ. C.K. Thanu Pillai for the petitioner Mohammed Rafiq, Government Pleader, for the respondent JUDGMENT The petitioner, a dealer in gold ornaments, has filed this revision petition challenging the orders of the VATAppellate Tribunal confirming penalty levied under section 67 of the Kerala Value Added Tax Act, 2003 (hereinafter called as the Act , for short) for evasion of tax during the ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 16.22 crores as against the declared turnover up to the date of search, which was only around ₹ 37 lakhs. The intelligence officer after analyzing the entries in the sales slips found that the entire transactions stated therein represent unaccounted sales made during the year up to the date of search. Besides seizure of slips proving unaccounted sales, the Department also noticed that the accounts maintained are not credible on account of stock variation and other defects. After a detailed enquiry and after issuing show-cause notice and after hearing the petitioner's objections, the intelligence officer levied penalty at double the amount of tax evaded by the petitioner. In the first appeal filed by the petitioner, the appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seized represent unaccounted sales made by the petitioner without materials. On the other hand, this is a case where the Department made a sample purchase immediately before search to find out the trade practice of the petitioner and the Department successfully trapped the petitioner because in the records seized the slip representing unaccounted sale made to the departmental officer who made the sample purchase immediately before search was also found. Therefore unlike in other cases of recovery of business slips or other papers containing entries not recorded in regular books of accounts, in this case the Department has by making a sample purchase established business practice of unaccounted sales by the petitioner by issuing slips. When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal's order, we have still considered the explanation offered by the petitioner pertaining to slip No. 101 which represents transaction for ₹ 10,12,507. According to the petitioner, the transaction covered by the slip represents loan taken from a limited company by name M/s. Muthoot Fincorp Ltd. In order to verify the genuineness of the claim made by the petitioner, the Tribunal called for the balance sheet and audited accounts of the petitioner. In the audited accounts of the petitioner, though it was prepared after the search, the transaction is not shown as loan taken from the company, namely, M/s. Muthoot Fincorp Ltd. In short, the claim of the appellant therefore stands disapproved by their own profit and loss acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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