TMI Blog2023 (3) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... as put forth by the petitioner, or at the rate proposed by the Officers. There are any number of submissions that could have been put forth by the petitioner in support of the rate propounded by it, pursuade to the Assessing Officer, had only such opportunity been granted. The petitioner, in its wisdom and based on trade practice, has adopted a certain rate of GP and it is in my view, not appropriate for the Assessing Officer to have adopted a substantially higher rate, without affording the petitioner an opportunity to explain the rates adopted by it - In fact, the conclusion in the impugned orders, is that no materials were provided by the petitioner in support of the G.P. adopted by it. Such failure is a direct consequence of the fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... di for arriving at the turnover in the cases of civil works contractors, since several projects would run simultaneously for different periods of time. Hence one of the methods that is accepted both by Industry as well as by the Commercial Taxes Department is to arrive at the turnover based on the purchases made in the relevant period of assessment to which an acceptable Gross Profit (GP) is added. 3. The petitioner's place of business was subject to inspection by the Enforcement Wing of the Department on 17.07.2015 wherein it was ascertained that the rate of G.P. added was 10 11% on the purchases made. The Enforcement Wing was of the opinion that this modus operandi is incorrect and required re-consideration by adding gross profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis that the rate of GP should be as adopted in the Income-tax proceedings, varying at rates between 19 to 31%. 7. While this is so, and it would have been appropriate for the officer who was third and last in the series of Assessing Officers to hear the petitioner and pass an order, it is the second officer who issued notice on 07.02.2019, who passed the impugned order on 30.12.2019, confirming the pre assessment proposal. It is as against these orders that the petitioner has filed the present batch of writ petitions. 8. The irregularity in procedure followed, the error in the computation of turnover and the fact that the entirety of the impugned order is based on the enforcement proposals, the assessing officer not revealing any i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viso to Section 22(4). There is thus a statutory difference. However, in all matters where the issue that arises for consideration requires a deliberation between the parties, it is incumbent upon the Officer to have called upon the petitioner to explain its stand. 13. The issue in this case relates to adoption of Gross Profit, whether at 10 11 % as put forth by the petitioner, or at the rate proposed by the Officers. There are any number of submissions that could have been put forth by the petitioner in support of the rate propounded by it, pursuade to the Assessing Officer, had only such opportunity been granted. 14. In fact, even in the case relied on by the respondent, the learned Judge notes this possibility at paragraph 34 whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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