9911796707
TMI Blog2022 (11) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Revision Case No. HZ 105 of 2012, wherein revision application has been dismissed and the Appellate Order dated 07.09.2012 including the Assessment Order dated 02.02.2011, wherein gross turnover of the Petitioner was enhanced by a sum of Rs. 1,65,34,577.72 and, consequentially tax levied @ 4%, has been upheld. 3. Petitioner is primarily engaged in the business of manufacture and sale of Sponge Iron and during processing and manufacturing of Sponge Iron, iron ore fines and coke as its by-products are produced, which are also sold by Petitioner to its customers. Petitioner, for the purpose of carrying out manufacturing activity, purchases iron ore and consumables, such as, coal, lubricant, etc., and, it is the case of the petitioner that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le figure of sponge iron and, accordingly, tax @ 4% was levied thereupon. 5. Petitioner, being aggrieved by the Assessment Order, preferred statutory appeal before the Joint Commissioner of Commercial Taxes (Appeal), Hazaribagh Division, Hazaribagh, which was dismissed vide order contained in Memo No. 403 dated 07.09.2012 (Annexure-7). Thereafter, petitioner preferred statutory revision application before Commercial Taxes Tribunal, Jharkhand being Revision Petition No. HZ 105 of 2012, which was also dismissed vide order dated 7th March, 2017. 6. Before the Appellate Authority as well as Revisional Authority, petitioner contended that Assessing Officer, by merely taking into consideration one or the other figures from books of account of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erely based on surmises and conjectures. It was contended that books of account of the petitioner was duly accepted by the Assessing Officer, but, despite thereof, concealment of sale was determined by reckoning one or the other figures from the books of account. It was further contended that there was no iota of evidence to demonstrate that petitioner has concealed its sales turnover. 8. Our attention was drawn to the audited books of account of the petitioner and it was submitted that in the same books of account, two separate figures were shown i.e. the figure of cost of goods sold, and, the sale price of goods sold. Referring to page 45 and page 61 of the writ petition it was contended that in the consumption account, cost of iron ore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the said reason that the Assessing Officer treated two different figures shown towards sale of iron ore as self contradictory and has treated the differential amount as concealed sales and levied tax thereupon. It was further contended that the Assessing Officer, on the basis of books of account of the petitioner, determined that petitioner has earned gross profit on sale of sponge iron of Rs. 2,15,33,524/- and has further earned profit on sale of coal and iron ore fines of Rs. 78,97,925/- and Rs. 8,62,443/- respectively. The total amount of gross profit comes to Rs. 3.02 crores, whereas petitioner has only shown gross profit of Rs. 2,20,06,604.04 and, thus, petitioner has shown less gross profit of Rs. 82.00 lakh, which was rightly trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the exact amount of Rs. 82,67,288/-, proceeded to levy tax again on the said amount by treating it as concealed sale. It appears that the Assessing Officer has completely misconceived itself while passing Assessment Order, as, on one hand, the loss suffered on sale of sponge iron was treated as concealed sale amount, and, on the other hand, exact sale figure was treated to be the concealed sale amount of sponge iron by stating, inter alia, that petitioner has shown less gross profit in the books of account. We further agree with the submissions of the petitioner and, in the Assessment Order, no adverse finding and/or evidence was recorded about concealment of sales, and, only on the basis of books of account of the petitioner, concealed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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