2001 (4) TMI 877

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h brought to our immediate notice the fact that the petitioner may be placed in an incongruous position if we were to decide these petitions on merits one way or the other because what was submitted by the petitioner's learned counsel was that on a verification of the records from his client's possession it is confirmed that the appeals whereby the petitioners have questioned the validity of the tax imposed on them are yet to be decided by the Tribunal. Therefore, if for any reason the petitioners were to loose on merits before this Court and, on the other hand were to succeed before the Tribunal they would be in a position whereby the department upholds the non-levy of tax but at the same time, the court upholds the penalty that has been i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce Sheet and Profit Loss Account and admittedly that it was from this background that the department came to know about this transaction and that consequently, it was wrong on the part of the department to either suspect or conclude that there was any attempt to evade tax on the petitioner's part. The submission proceeds on the footing that the petitioners genuinely believed that the amount realised from these contracts was not susceptible under the Karnataka Sales Tax Act, 1957 and that this was the reason why the same were not offered for tax. We refrain from saying anything with regard to the merits or otherwise of these contentions because as has emerged in the course of the argument from both sides, there is much to be said on either s....