TaxTMI 
TaxTMI 
2018 (4) TMI 647
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....tore, respondent herein, was originally assessed on a total and taxable turnover of Rs. 3,57,09,410/- and Rs. 3,52,76,415/- respectively, as against the reported total and taxable turnover of Rs. 6,47,81,973/- and Rs. 3,32,29,067.74 respectively, by the Commercial Tax Officer, Ramnagar Circle, Coimbatore, vide proceedings dated 25.06.1997. Against which, the respondent has filed Appeal No.304/1997 and vide order dated 16.10.1997, the Additional Appellate Assistant Commissioner (Commercial Taxes), Coimbatore, has allowed the said appeal. 3. Being aggrieved by the same, the State has preferred Appeal No.51 of 1998, before the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Coimbatore. After considering the facts and circumstanc....
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.... A verification of the fixed asset sales details filed by the appellants reveals that they have purchased the machinery from M/s Gnanambikai Mills Limited, Coimbatore, and the Tuticorin Spinning Mills Limitied, Tuticorin. These purchases have suffered tax at 8% during the year 1986 at the hands of the Tuticorin Spinning Mills Limited and at 4% during the year 1990 at the hands of M/s Ganambikai Mills Limited. The appellants have shown depreciation value of the machinery and the written down value is very less. They have sold these spinning frames to M/s Veerajoti Textiles Mills Private limited, Thekkur, and Sree Shivamalai Andavar Spinning Mills, kangayam for Rs. 3,50,000/- and for Rs. 21,60,000/-. In view of the above the Assessing....
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....Rs. 4,32,995/- and brought the difference of Rs. 20,77,005/- to tax, he allowed deduction for Rs. 4,32,995/- only taking into consideration the purchase cost an adding gross profit at 10%. It is further argue that the Appellate Assistant Commissioner after going through all the records and accounts and considering the facts, deleted the disallowance made by the Assessing Authority. 7. The appellant-State would state the following in their grounds of appeal: a. The corresponding sales bills issued by the respective mills have not been produced by the appellants to prove that the very same machineries purchased by them have been sold as second sales. b. No proof for the sufferance of tax at an earlier stage in the S....
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....d been sold. iii. The respondents being a company is statutorily required to maintain a register called Fixed Assets Register which contains the particulars of purchase cost of machinery, depreciation claimed each year the details of sales if any and the value thereon. The respondents while filing details for the claim of second sales have furnished list of machinery sold and the ledger folio noted therein relate to the folio number off. The Fixed Assets Register and no separate accounts have been kept for purchase of each and every machinery in the financial ledger. The above facts with records have been verified the ld. Appellate Assistant Commissioner at the time of appeal and on perusal of the connected records only, t....
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....the order passed by the learned Appellate Assistant Commissioner in allowing the appeal is found to be in order and which calls for no interference. In the end, the State Appeal stands dismissed." 3. Being aggrieved by the abovesaid order, the State has filed the instant Tax Case Revision. 4. Mr.V.Hari Babu, learned Additional Government Pleader (Taxes), submitted that the Tribunal has failed to note that the Assessing Authority had observed that considering the purchase and sale value, the gross profit worked out to Rs. 21,16,368.00, which was abnormal and it is seen that the dealers have purchased textile machinery spares, both within the State and outside the State and used them with the textile machinery and therefore, su....