TaxTMI 
TaxTMI 
2015 (10) TMI 626
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....er the Kerala Tax on Luxuries Act, 1976 and is engaged in the business of renting out a house boat with two Air Conditioned bedrooms in the name and style of "Lake Surya". For the purposes of assessment under the Kerala Tax on Luxuries Act, the petitioner had opted for the payment of tax on compounding basis as provided under Section 5A of the Act. The option was exercised in respect of the assessment years 2013-2014 and 2014-2015 respectively. The 1st respondent, acting on the application preferred by the petitioner for payment of tax on compounding basis, accorded permission for payment of tax under Section 5A of the Act and fixed the compounding fee at Rs. 22,000/- per year and Rs. 1,840/- per month. The petitioner was accordingly liable....
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....n if there is a default in payment of the instalments, the option available to the respondents was only to proceed with the revenue recovery steps for recovery of the amounts defaulted by the petitioner. Counsel for the petitioner would contend that, the 1st respondent did not have the jurisdiction to complete a regular assessment on best judgment basis in respect of the petitioner during the period when he had opted for payment of tax on compounded basis. 4. I have heard the learned counsel for the petitioner and the learned Government Pleader for the respondents. The learned Government Pleader would submit that, the provision of Section 6 of the Kerala Tax on Luxuries Act would clearly apply to cover situations were a person, who had ini....
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.... of the Kerala Tax on Luxuries Act, defaults in payment of any of the instalments that is fixed in relation to the said assessee, then the revenue authorities will be well within their rights to recover the defaulted instalments in accordance with the provisions of the Act and even resort to revenue recovery proceedings for recovering the said amounts. There are also penal provisions which are included in the Scheme of compounding, under Section 5A of the Kerala Tax on Luxuries Act. The issue that arises for consideration, however, is whether the revenue authorities can, while the option exercised by the assessee for payment of tax on compounded basis under Section 5A subsists, resort to a simultaneous assessment on regular basis as contemp....