Double taxation in turnover assessment barred where amounts were already taxed in other assessment years and required verification.

Amounts already assessed in other assessment years could not be included again in the 2004-05 works-contract turnover if that would result in double taxation. The Court noted that the assessing authorities had not properly examined the assessee's plea that part of the turnover had already suffered tax in 2003-04 and another part related to 2005-06, and held that such amounts required verification and exclusion from the net turnover if already assessed elsewhere. The impugned orders were set aside and the matter was remitted for fresh assessment after re-examination of the books of account and supporting material.

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Issues: Whether amounts already assessed to tax in the previous and subsequent assessment years could be included again in the turnover for the assessment year 2004-05, thereby resulting in double taxation.

Analysis: The dispute concerned a works-contract turnover computation under the Andhra Pradesh General Sales Tax Act, 1957. The Court found that the assessing authorities had not properly examined the specific factual plea that part of the turnover had already suffered tax in Assessment Year 2003-04 and another part related to the subsequent year 2005-06. It held that, while computing net turnover, such amounts required verification and exclusion if they had already been assessed in the respective years, since including the same sums again in the impugned year would amount to double taxation. The Court also directed the Assessing Authority to re-examine the books of account and material on record and pass a fresh order.

Conclusion: The issue was answered in favour of the assessee. The impugned orders were set aside and the matter was remitted for fresh assessment after verification of the turnover pertaining to the earlier and subsequent assessment years.

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