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TMI Blog2024 (3) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... to 2014-15 are under challenge. 2. The petitioner is a partnership firm represented by Smt.Shanthi Selvaraj. Returns were filed by the petitioner for each of the above mentioned assessment years. Pursuant to an inspection undertaken by the enforcement wing officials, the petitioner received a notice dated 12.08.2016. Such notice dealt with about five defects. The focal point of challenge is defect No.3 relating to freight not reported and sold with under value. Upon receipt of the above mentioned notice, the petitioner submitted a reply dated 30.08.2016. In the reply, the alleged defect relating to freight was responded to by stating that freight charges incurred by the petitioner were accounted for in the books of accounts and that all pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat proceedings relating to assessment orders 2014-15 are also vitiated for the same reasons. 4. The next contention of learned counsel was that the determination of alleged suppression of freight charges is completely unreasonable. By referring to the notice dated 12.08.2016, he points out that the freight charges per consignment with regard to freight from Gujarat was fixed at Rs. 1,00,000/-. Similarly, he pointed out that freight charges per consignment from Rajasthan was fixed at Rs. 80,000/-. By referring to the impugned order, learned counsel pointed out that the petitioner stated that he had received about 13 consignments from Gujarat of a value of less than Rs. 50,000/- per consignment. Similarly, he had received six consignments o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised notice dated 27.08.2018. 6. On the merits, Mr.C.Harsha Raj contended that the assessment orders were issued on best judgment basis because the petitioner failed to place on record requisite documents to substantiate that only the disclosed amounts were incurred towards freight charges. As regards assessment year 2014-15, Mr.Harsha Raj, learned Additional Government Pleader, submitted that the suppressed turnover had been determined as Rs. 59,31,520/- in the notice dated 12.08.2016. Based on documents submitted by the petitioner, he submits that this was reduced to Rs. 31,01,417/- and that after giving credit to the disclosed sum of Rs. 17,83,766/, tax was computed on the said sum at Rs. 14.5% and the petitioner was directed to pay a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause by prescribing that the date of deemed assessment shall be 30.06.2012 in respect of assessment years commencing from 2006-07 and ending with the assessment year 2010-11. The assessment years 2007-08 to 2010-11 are relevant for the purpose of these cases. All these assessment years fall within the scope of the proviso to sub-section 2 of Section 22. The contention of Mr.Ramesh, in this regard, that the proviso is inapplicable cannot be countenanced because both the principal clause and the proviso deal with deemed assessment and the entire sub-section applies in all cases where assessment orders were not issued. Admittedly, assessment orders were not issued in these cases pursuant to returns being filed. Since the proviso applies to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the assessing officer did not determine the alleged suppressed freight charges on a rational basis. Hence, the assessment orders as regards assessment years 2007-08 to 2013-14 warrant interference. 10. Since the fact situation relating to assessment year 2014-15 differs in some respects, the same is discussed separately. With regard to this assessment year, the petitioner had filed a rectification petition which was disposed of by order dated 05.06.2020. In the notice dated 12.08.2016, the suppressed turnover with regard to freight was specified as Rs. 89,31,520/-. As against this, in the rectification order, the assessing officer has determined the suppressed freight charges as Rs. 13,17,651/- and computed tax on that basis. It als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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