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2019 (11) TMI 418

..... e-assessment where the Prescribed Authority has grounds to believe that any return furnished which is deemed as assessed or any assessment issued under Section 38 of the Act understates the correct tax liability of the dealer - It may, based on any information available, re-assess, to the best of its judgment, the additional tax payable and also impose any penalty under sub-section (2) or sub-sections (4) and (5) of Section 72 of the Act and demand payment of any interest and shall issue a notice of re-assessment to the dealer demanding that the tax shall be paid within 30 days of the date of service of the notice after giving the dealer the opportunity of showing cause against such re-assessment in writing. It is not in dispute that the As .....

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..... Sahukar, HCGP) S. Sujatha J., ORDER This revision petition is filed under Section 65(1) of the Karnataka Value Added Tax Act, 2003 ( Act for short) raising the following questions of law ;- 1. Whether on the facts and in the circumstances of the case, the DCCT (Audit)-2 DVO, Kalaburagi was right in treating sales noted by the Enf. Authority and verified by himself on the basis of Estimate Bills and credit note book amounting to ₹ 43,80,076.00 as suppressed sales and further one time addition of equal value, is correct in the eyes of law ? And whether one time addition is based on any material on hand? 2. Whether the DCCT (Audit) 2 DVO Kalaburagi is correct in treating the stock difference noted by the Enf. Authority, amounting to S .....

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..... ular account books which was exigible to levy of tax. The suppression of turnover detected by the Inspecting Authority was admitted by the Assessee. On the report furnished by the Inspecting Authority, the prescribed authority has incorporated the same in the assessments concluded for the tax periods 2012-2013 and assessed to the best of judgment under Section 39(1) of the Act by enhancing the turnover equal to the suppressed turnover detected by the Inspecting Authority for the month of September, 2013 in addition to the levy of penalty and interest. Further, 10% turnover was added to the reported turnover for the tax periods April, 2013 to March 2014. 3. Being aggrieved, the Assessee preferred the appeal before the First Appellate Authori .....

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..... losing the unaccounted turnover detected by the Inspecting Authority at the time of the inspection. 7. Learned Additional Government Advocate appearing for the Revenue, supporting the impugned order submitted that the suppression detected by the Enforcement Authority indeed was admitted by the Assessee and the payments towards the tax liability determined was made. In view of the admission made by the Assessee towards the suppression of sales turnover, the same cannot be challenged by the Assessee subsequently. The shortage found in the closing stock would indicate that the Assessee has not disclosed the correct turnover and the stock which was liable to tax has not been accounted. The tax liability ought to have been escaped if the same wa .....

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..... the business premises of the Assessee was inspected. On both the occasions, it was detected by the Enforcement Authority that the Assessee had indulged in the practice of not accounting the sales in the regular books of accounts. On the other hand, seven estimate bill books and the credit note books were found in the business premises of the Assessee which clearly indicated the sales made by the Assessee without accounting the same in the regular books. The difference in the shortage of closing stock also demonstrates the Assessee not keeping the proper books of accounts and the unaccounted sales without issuing sale invoices, which would otherwise, liable to payment of tax. The tax liability to which the Assessee is liable has come to ligh .....

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..... eriod being a calendar month under the provisions of the Act has partly allowed the appeal filed by the Assessee deleting the same to the other tax periods. On further appeal, the same has been confirmed by the KAT. 11. For the foregoing reasons, except question of law No.(3) all other questions of law raised by the petitioner requires to be answered against the Assessee and in favour of the Revenue. As regards the question No.(3), we are of the considered view that penalty levied at ₹ 1,00,631/- under Section 72(2) of the Act requires to be re-considered in view of the return filed by the petitioner for the tax period September, 2013 disclosing the sales turnover detected by the enforcement authority. Hence, penalty under Section 72( .....

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