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M/s U.P. Furnitures Versus The Commissioner Commercial Tax

2016 (11) TMI 414 - ALLAHABAD HIGH COURT

Best judgement assessment - Job-work - turnover pertaining to job-work and repairing activity - Held that: - The findings of manufacture of furniture and sales thereof is supported by concurrent findings of fact recorded by the authorities based on material on record. That apart the Assessee, in his reply to the show cause notice, has himself admitted the nature of his business activity to be manufacture, repair and job work. However, he could not prove job work. Thus the findings of the Tribuna .....

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.T. with regard to the genuineness of repairing disclosed by the Assessee. Thus the receipt of repairing charges from the aforesaid two persons can not be doubted and the addition in the turnover on the basis of receipt of repairing from these two persons is wholly unjustified. Rest of the amount of receipts from repairs could not be proved by the Assessee. - Since the profit shown from repairing has been proved by the Assessee to the extent of ₹ 9,900/- hence proportionate addition i .....

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No. 97 of 2016 - Dated:- 4-11-2016 - Hon'ble Surya Prakash Kesarwani, J. For the Applicant : Suyash Agarwal For the Opposite Party : C.S.C. ORDER Heard Sri Suyash Agarwal, learned counsel for the applicant and Sri B.K. Pandey, learned standing counsel for the respondent. The above noted revisions are admitted on the following questions of law: (i) Whether the Tribunal rightly set aside the finding of the appellate authority without assigning any reasons when a copy of the repairing and job .....

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d purchase ₹ 15,00,000/- without setting aside the finding of the Appellate Authority and without considering Assessment order of A.Y. 2007-08 and A.Y. 2009-10. With the consent of learned counsel for the parties both the revisions are being finally heard together. Briefly stated facts of the present case are that according to the Assessee it is engaged in trading, job work and repair of furniture. During the assessment proceeding for Assessment Year in question i.e. A.Y. 2008-09 (U.P.), t .....

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urers and transportation challan etc. Certain other discrepancies were also found. The Assessing Authority did not accept the explanation of the Assessee with regard to trading, job work and repair. Consequently he made best judgment assessment determining the evaded turnover of furniture at ₹ 25 lacs and evaded purchases of ply wood, Board, mica, fevicoal and timber etc. at ₹ 15 lacs. Thus by Assessment Order dated 10.5.2012 a demand of ₹ 4,14,724.00 was raised against the Ass .....

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Act 2008 (hereinafter referred to as "the Act"). By order dated 23.6.2016 the Second Appeal of the respondent was allowed and the appeal of the Assessee was dismissed by the Member Commercial Tax Tribunal, Bench-II, Agra. Aggrieved with aforesaid order of the Tribunal allowing the appeal of the respondent and dismissing the appeal of the Assessee, the Assessee has filed these two revisions. Learned counsel for the applicant Assessee admits best judgment assessment but submits that ther .....

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out the genuineness of the aforesaid repairs, it was open to them to inquire about it from both the aforesaid departments. He, further submits that determination of turnover with regard to repair and job charges is not based on any material but the same is the result of arbitrary exercises of power by the Assessing Authority. Learned standing counsel supports the impugned order of the Tribunal. I have carefully considered submission of learned counsel for the parties. The findings of manufacture .....

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cerned, the Assesee has clearly stated and produced sufficient material before the Assessing Authority, the First Appellate Authority and the Tribunal with regard to receipt of amount on account of repairs from two agencies, namely, UCO Bank and the I.T.A.T. which comes to ₹ 9,900. The Assessing Authority has not made any inquiry from the aforesaid UCO Bank and I.T.A.T. with regard to the genuineness of repairing disclosed by the Assessee. Thus the receipt of repairing charges from the afo .....

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ts to establish it despite pointed query made by the Assessing Officer. The gross profit rate adopted by the Tribunal to determine the evaded sales turnover of the Assessee on the basis of the profit shown by the Assessee allegedly from job work and rest of the repairs, can not be said to be arbitrary. The Tribunal has recorded its findings of fact with regard to job work in paragraph 8 of the impugned order that although in the repairing account receipts have partially been shown in cash and pa .....

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rmining turnover of sales on the basis of gross profit shown by the Assessee from job work treating it to be profit from sales of furnitures. So far as the determination of unaccounted purchase of ₹ 10 lacs and ₹ 5 lacs total ₹ 15 lacs by the Assessing Authority as upheld by the Tribunal is concerned, I find substance in the submission of the learned counsel for the Assessee. It is not the case of the department that apart from the material shown by the Assessee which have been .....

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