2014 (11) TMI 1028

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....he provisions of the Indian Companies Act having its registered office at Hyderabad. The petitioner is engaged in the trading activities of iron and steel apart from Tower & Tower parts. The petitioner in the course of business purchases iron and steel from locally registered dealers and effect sales of the same to the other locally registered dealers. That apart, the Head Office at Hyderabad have their own set of activities in and around Hyderabad. 3.The petitioner filed monthly returns which were accepted in terms of Section 22(2) of the Act. The officials of the Enforcement Wing of the respondent Department inspected the place of business of the petitioner on 22.08.2013 and 23.08.2013 and are said to have been pointed out certain defects....

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....y plant and machinery for carrying out manufacturing activities. It is a trading Division having Sales Tax and Central Excise Registration. Further, it was stated that the car sale took place in the Head Office in Hyderabad in Andra Pradesh. The petitioner enclosed the copy of the balance sheet and the certificate obtained from the Auditor in which the Auditor has clearly certified that the Sale of Assets and Vehicle were not related to Chennai Branch. The petitioner also appeared for personal hearing and said to have explained the same based on the balance sheet and the audit certificate. The petitioner would state that they were with the fond hope that the respondent would consider their submissions and if there was any further query, the....

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....ce and that inspite of production of the balance sheet and the Auditor certificate, the Assessing Officer ought not to have rejected the petitioner's contention by raising a new plea that this purchase/sale bill or debit note was not furnished. However, the petitioner stated that they have procured the bills and other documents like return copies etc. from their Head Office at Hyderabad to establish the fact that the transactions do not pertain to their Chennai Division and it is not assessable within the State of Tamil Nadu. Therefore, it was submitted that there is a gross jurisdictional error and requested for rectification. Further, the petitioner agreed to produce all the books of accounts and connected records to substantiate the ....

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....ant and machinery and vehicle was not reported and no documentary proof was shown that it was reported and tax paid to the Department. The contention of the petitioner was that the Chennai Division does not have any manufacturing facility and it is only a Trading Division. The sale took place in Hyderabad which is their Head Office and the sale has been reported before the Jurisdictional Assessing Officer at Hyderabad and tax paid. To substantiate their claim, the Auditor's certificate and the copy of the balance sheet was produced. The respondent did not entertain any doubt with regard to the balance sheet or the Auditor certificate. However, while passing the assessment order dated 30.06.2014, while accepting those documents were prod....