2021 (3) TMI 11

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....rred to as 'the Act' for short) has been filed by the appellant against the order passed by the Additional Commissioner of Commercial Taxes dated 30.11.2015 under Section 64(1) of the Act. 2. The subject matter of the appeal pertains to the assessment period April 2007 to March 2008. The appeal was admitted by a Bench of this Court vide order dated 17.03.2016 on the following substantial questions of law. "1. On the facts and in the circumstances of the case whether the Additional Commissioner of Commercial Taxes, Zone-I, Bengaluru is right in holding that the TDS deducted does not constitute exemption turnover in the absence of such provision in the Act and Rules? 2. On the facts and in the circumstances of the case whether the tax de....

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....oner of Commercial Taxes. The assessee filed a reply to the notice on 10.08.2010 and thereafter, the Revisional Authority passed an order under Section 63-A of the Act dated 16.11.2012, by which the revisional proceedings in relation to deduction of tax at source to the extent of Rs. 22,40,187/- were dropped. 4. However, the aforesaid order was taken up in suo motu revisional proceedings by the Additional Commissioner of Commercial Taxes and the Additional Commissioner by an order dated 30.11.2015 passed under Section 64(1) of the Act, set-aside the order dated 16.11.2002 passed by the Joint Commissioner of Commercial Taxes and directed the authority to compute a taxable contract receipts after disallowing total TDS at Rs. 23,40,187/- to l....

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....ion in the factual situation of the case. Learned Additional Government Advocate has further submitted that the TDS is collected on the total contractual receipts and not on the profits. Therefore, the same cannot be deducted from the total turn over. 7. We have considered the submission made on both sides and perused the record. Before proceeding further, it is apposite to take note of the relevant extract of Rule 3(2) and (h) of the Rules which provides for amounts which have to be deducted from the total turn over. Rules 3(2) and (h) of the Rules reads as under: "3. Determination of turnover. (1) xxxx (2) The taxable turnover shall be determined by allowing the following deductions from the total turnover.- xxxx (h) All amounts ....