2019 (5) TMI 1220 - HC - VAT and Sales Tax

High Court upholds Tribunal decision on U.P. Trade Tax Act revision for 1999-2000 assessment year

M/s Annapurna Trading Company Madhupur Thr Its Proprietor Versus Commissioner of Trade Tax U.P. Lucknow

M/s Annapurna Trading Company Madhupur Thr Its Proprietor Versus Commissioner of Trade Tax U.P. Lucknow - TMI Issues: Assessment under U.P. Trade Tax Act for the year 1999-2000, validity of assessment order, revision under Section 10-B of the Act, turnover estimation, tax liability determination, failure to produce books of account, variation in stock records, ownership of goods found during inquiry and survey, appeal to Tribunal, judicial review of Deputy Commissioner's order.Analysis:The case involved a revision under Section 10-B of the U.P. Trade Tax Act for the assessment year 1999-2000. The applicant, a commission agent in food grains and vegetables, disclosed a gross sale of Rs. 10,24,863 and a net sale of Rs. 3,62,193, admitting a tax liability of Rs. 10,812.72. The assessing authority accepted the disclosed turnover and books of account but later found discrepancies during an inquiry and survey. An inquiry revealed goods loaded on a truck belonging to the applicant's brother, with no satisfactory explanation provided. Subsequently, a show cause notice was issued, and the Deputy Commissioner initiated proceedings under Section 10-B based on the inquiry and survey findings, estimating the turnover at Rs. 16,70,193 with a tax liability of Rs. 66,807.The Deputy Commissioner found that the assessing authority had ignored the inquiry and survey reports, leading to an erroneous assessment order. Notably, the applicant failed to produce books of account for verification during the survey, and discrepancies were observed in the stock records. The Deputy Commissioner concluded that the goods found during the inquiry and survey belonged to the applicant, leading to the revision of the assessment order. The Tribunal upheld the Deputy Commissioner's decision, prompting the applicant to file a revision before the High Court.Upon review, the High Court found no grounds to interfere with the Deputy Commissioner and Tribunal's findings, considering them as factual and based on evidence from the inquiry and survey. The Court affirmed the Tribunal's decision, dismissing the revision. The judgment highlights the importance of considering all relevant material and facts during assessments, emphasizing the need for accurate record-keeping and compliance with tax laws to avoid disputes and revisions under the statutory provisions.