TaxTMI 
TaxTMI 
2009 (2) TMI 70
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....tax under the Act. The petitioner has business of selling fresh vegetables on commission basis in the market outside Jamalpur Gate. The market is run and managed by Agricultural Produce Market Committee (APMC). The petitioner purchases vegetables from farmers and sells the same. According to the petitioner, the petitioner is supposed to get 5% commission on sales as decided by APMC and the petitioner is required to pay market fee at the @ 0.50 paise on every Rs.100/- of sale, which the petitioner collects from the purchasers of the goods sold by the petitioner. 3. Sometime in November, 1997, it is the say of the petitioner, that the petitioner received summons under Section 131 of the Act from the Assistant Director of Income-Tax (Invest....
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....the said Scheme, is sought to be taxed again. For this purposes reliance has been placed on various questions and answers issued in the form of Circular No.755 dated 25.07.1997 to contend that an income which has been declared under VDIS cannot be subjected to any further proceedings. Secondly, it was submitted that the reasons recorded do not disclose any income which has escaped assessment so as to clothe the respondent authority with jurisdiction. 6. On behalf of the respondent authority Shri M.R.Bhatt, learned Senior Standing Counsel, submitted that it was an accepted position that the petitioner was required to pay market fee @ 0.50 paise per Rs.100/- of sale and the petitioner had paid market fee of Rs.1,97,679/- in Assessment Year....
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....the facts of the present case because the Court is only to examine as to whether the re-opening of completed assessments initiated by issuance of three notices impugned is valid in law or not on the basis of settled parameters. For this purposes it is necessary to consider the reasons recorded by the respondent authority before issuance of impugned notices. Except for the difference in the figures for the three years under consideration, as the language employed is identical, one may usefully reproduce the reasons recorded in Assessment Year 1995-96 which read as under: "Name of the assessee : Shankarlal Nagaji & Co. Address of the assessee: Sardar Patel Market O/s. Jamalpur Darwaja, Ahmedabad. Assessment Year : 95-96 Status ....
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....fficer undertakes arithmetical calculation applying the formula of three by taking the figure of market fee paid as the starting point and working out the total commission which the assessee must have received on total sale proceeds by adopting the rate of 5% of sales. Thereafter, difference between commission shown and commission received has been worked out. The last paragraph thereafter states that the respondent has reason to believe that the income chargeable to tax has escaped assessment. There is no link between the last sentence of Paragraph No.2 and Paragraph No.3. After working out the gross commission receipts the Assessing Officer, while recording reasons, has not even stated that the gross commission receipts are the income cha....