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Sai Petro Products Versus The Assistant Commissioner, Krishnagiri Assessment Circle, Krishnagiri

2016 (7) TMI 855 - MADRAS HIGH COURT

Demand of VAT - higher turnover shown in the Income Tax Return - When the proprietor of the petitioner was questioned and the statement was recorded, it came to light that the returns indicating higher turnover were filed before the Income Tax Authorities only with an intention to receive a bank loan and that they did not represent the actual turnover of the petitioner for the relevant assessment years. - Held that:- the morality and intention of an assessee does not enter into the field of adju .....

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rtunity to the petitioner to produce necessary records before the respondent to establish the actual sales. - Matter remanded back. - Writ Petition Nos. 24216 to 24219 of 2015 & MP.Nos.1, 1, 1 and 1 of 2015 - Dated:- 14-6-2016 - T. S. Sivagnanam, J. For the Petitioner : Mr.N.Murali For the Respondent : Mr.Manohar Sundaram, AGP ORDER Heard both. By consent, the writ petitions are taken up for final disposal. 2. The petitioner, who is a registered dealer on the file of the respondent under the pro .....

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that the income tax assessment files maintained by the petitioner in their factory premises were seized and the Enforcement Wing officials pointed out that in the income tax returns, the petitioner reported higher turnover. When the proprietor of the petitioner was questioned and the statement was recorded, it came to light that the returns indicating higher turnover were filed before the Income Tax Authorities only with an intention to receive a bank loan and that they did not represent the act .....

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lenging the orders of assessment on the ground that the petitioner had no opportunity to file their objections to the notices dated 8.9.2013 and that the assessment orders, having been passed without affording an opportunity to the petitioner, are liable to be set aside. 5. The writ petitions filed by the petitioner earlier in W.P.Nos.1350 to 1353 of 2014 were disposed of by a common order dated 21.3.2014 by directing the petitioner to submit their objections to the pre-assessment notices within .....

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unch. It was further stated that no sales suppression or stock variation was ever made out by the Authority concerned at any point of time and that the petitioner never involved in any activity resulting in any sales suppression or non payment of tax. 7. The petitioner further stated in their objections that they had been maintaining the stock register in the place of business and factory and produced all documents before the Enforcement Wing officials, who have not considered the same and reque .....

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fore the Enforcement Wing officials, which were not considered. 8. The Assessing Officer, after affording an opportunity of personal hearing, framed the assessments by orders dated 7.7.2015 and 8.7.2015, which are impugned in these writ petitions. 9. On a perusal of the impugned orders of assessment, it is seen that the only reason for confirming the proposals in the pre-assessment notices is on the ground that the petitioner has not been able to produce any documentary evidence in proof of thei .....

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rtunity to enable him to produce relevant records to establish that there is no sales suppression. Furthermore, the learned counsel for the petitioner submitted that the loan availed by the petitioner from the Indian Overseas Bank has been completely cleared and a certificate to that effect has been issued by the bank, which certificate has been duly registered as doc.No. 3322 of 2013. That apart, the learned counsel submitted that the electricity consumption would clearly establish that there i .....

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pellate Tribunal and two of the questions, which were framed, were (i) whether the Appellate Tribunal, as a final fact finding authority, was justified in ignoring the evidences produced by the petitioner to show that there was no sale effected by them as shown in the invoices and hence, there was no sales suppression ? and (ii) whether the Appellate Tribunal was correct in confirming the levy of tax on the petitioner assuming that the transaction per se (bill discounting) is a sale, as then the .....

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assessee had noted this transaction as loan in the books of accounts. Read in the context of the factual absence of any block of raw films at the time of inspection and the affidavit filed from the various suppliers as well as the Indian Bank on the proceedings taken against Indian Bank on the bogus transactions, we can only draw an inference that the contentions of the assessee merited acceptance by this Court. We may point out that the Sales Tax Appellate Tribunal had not adverted to the fact .....

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cide whether there was sale transaction or not. Thus with the proceedings still pending before the Criminal Court on the allegation of fictitious loan transaction dealt with by the bank and one of the parties being the assessee herein, we have no hesitation in setting aside the order passed by the Sales Tax Appellate Tribunal in so far as the appeals filed by the assessee are concerned." 13. Thus, the Assessing Officer is entitled to consider the records independently de hors the fact as to .....

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