2008 (7) TMI 928

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....troversy involved therein are common and interwoven. The dispute relates to the assessment year 1986-87. The dealer opposite party carries on the business of purchase and sale of tractor, tractor parts, accessories, etc. In the assessment year in the question only a limited controversy relating to the return of the goods and its consequent set-off in the trade tax is involved. Before proceedings ....

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....the order under revision has held that there is no requirement under the aforesaid rule that the goods should be defective. The Tribunal has recorded a finding that the goods were returned within six months which is condition requisite for claiming the benefit under the aforesaid rule and the transaction in question is duly accounted for in the account books. The learned Standing Counsel has rais....

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....e party in the present case. He submits that, as a matter of fact, the goods in question, namely, the tractors were never returned. To avail of the concessional rate of tax, corresponding entries were made in the account books and the credit note was issued by the dealer-opposite party to the customers. The further submission is that since the dealer-opposite party has failed to establish that the....

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.... is colourable device to avoid the tax liability. If a person does a thing which is permissible under law, his said action in absence of any other material cannot be treated as a colourable device. Every taxpayer has right to arrange his affairs in such a manner without there being any infraction of law to pay the minimum tax. In this view of the matter, it is evident that the authorities below w....