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2016 (8) TMI 669 - MADRAS HIGH COURT

2016 (8) TMI 669 - MADRAS HIGH COURT - TMI - Deemed sales turnover - Nature of contract receipt shown in the balance sheet - the petitioner submitted that the contract receipt shown in the balance sheet actually does not represent any contract receipts from prospective flat buyers for construction of flats and hence, such contract receipt amount shown in the balance sheet cannot be taken for the purpose of arriving deemed sales turnover liable to tax under the Act. - Held that:- the respond .....

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ders and are in violation of the principles of natural justice. - Writ petitions are allowed - Matter remanded back. - Writ Petition Nos.26361 to 26366 of 2016 & WMP.Nos.22601 to 22606 of 2016 - Dated:- 28-7-2016 - T. S. Sivagnanam, J. For the Petitioner : Mr.T.Pramod Kumar Chopda For the Respondent : Mr.S.Kanmani Annamalai, AGP ORDER Mr.S.Kanmani Annamalai, learned Additional Government Pleader takes notice for the respondent. Heard both. By consent, the writ petitions are taken up for fina .....

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posal sent by the Commercial Tax Officer, Group-I, CEW-I, Enforcement-I, Chennai-6, the respondent issued notices dated 11.1.2016, by referring to the defects pointed out by the Enforcement Wing. One factor, which has to be mentioned at this juncture, is that on the date of inspection, the petitioner did not have any registration under the provisions of the Act. 4. But, after the inspection was conducted, before the Inspecting Authority, the petitioner remitted the value added tax for the deemed .....

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5. 5. On receipt of the notices dated 11.1.2016, the petitioner submitted a reply dated 25.1.2016 enclosing 8 documents in support of their stand. It is not in dispute that the respondent received the objections dated 25.1.2016. However, for about six months, the matters were in cold storage and the respondent did not take any action. Therefore, the petitioner submitted their further objections dated 28.6.2016. In the objections dated 28.6.2016, apart from other factual and legal aspects, the pe .....

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ting of results, which can be attributed to the proportion of work completed. 6. Therefore, the petitioner submitted that the contract receipt shown in the balance sheet actually does not represent any contract receipts from prospective flat buyers for construction of flats and hence, such contract receipt amount shown in the balance sheet cannot be taken for the purpose of arriving deemed sales turnover liable to tax under the Act. Hence, the petitioner contended that by adopting the said metho .....

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State of Tamil Nadu Vs. Shanmughanandha & Co. [reported in 104 STC 61] and the decision of the Hon'ble Supreme Court in the case of State of Madras Vs. S.G.Jeyaraj Nadar & Sons [reported in 28 STC 700]. 8. With regard to the manner, in which, the Assessing Officer has to function, the petitioner pointed out that the respondent should exercise quasi judicial functions as an Assessing Authority. In this regard, the petitioner brought to the notice of the respondent the decision of the .....

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sessments by passing one paragraph orders stating that the petitioner's contentions cannot be accepted, since, at the time of inspection, they were unregistered dealers and that the petitioner filed a copy of the sale deed for land cost and sample copies of four local purchase bills with details of purchases without mentioning the tax payer identification number of the sellers to prove whether the purchases were made locally. 10. It was further stated by the respondent in the impugned orders .....

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ar", the respondent has referred to R.C.Number and it is not known as to why the respondent has not referred the tax payer identification number, when, in the show cause notices dated 11.1.2016, the tax payer identification number was referred to. 13. Be that as it may, the petitioner having submitted a detailed representation and relied upon the accounting standards in AS 7(2), which stipulates percentage completion method, the respondent ought to have examined the issue and without doing .....

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