Turnover suppression and inadequate explanation defeat writ interference with assessment order after remand

A substantial mismatch between departmental purchase data and the assessee's monthly returns justified the assessment of suppressed turnover. Although the assessee relied on ledger accounts, profit and loss statements and balance sheets to contend that only concessional tax under Section 3(4) of the Tamil Nadu Value Added Tax Act was payable, the Court held that after remand it was incumbent on the assessee to provide a clear and complete explanation for the discrepancy. No satisfactory reply was furnished, so the writ court declined to interfere with the assessment order and upheld it, while leaving the statutory appellate remedy open.

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Issues: Whether interference was warranted with the assessment order in view of the alleged suppression of turnover and the petitioner's failure to furnish a satisfactory reply.

Analysis: The assessment arose from a second round of proceedings for the same assessment year after the earlier order had been set aside and remitted. The petitioner relied on ledger, profit and loss account, and balance sheets to contend that the taxable turnover was below the threshold and that only tax at the concessional rate under Section 3(4) of the Tamil Nadu Value Added Tax Act was payable. The respondents, however, relied on departmental purchase data and the monthly returns to show a substantial mismatch between purchases and reported sales, indicating a large turnover difference. The Court found that after remand it was incumbent on the petitioner to submit a clear and complete explanation, which was not done.

Conclusion: The challenge to the assessment order was rejected and the writ petition was dismissed.

Final Conclusion: The assessment order was upheld in writ proceedings, while leaving the petitioner free to pursue the statutory appellate remedy.

Ratio Decidendi: Where the revenue records disclose a substantial turnover discrepancy and the assessee fails to give a clear and satisfactory explanation after remand, the writ court will not interfere with the assessment order.

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