M/S. Venkateshwara Hatcheries LTD. vs. The Asst. Commissioner Of State Tax
Held
The High Court, relying on its Division Bench judgment in U.Manikandan, held that rejecting books of accounts and making an assessment solely based on price comparison with a PSU lacks reasonable nexus. Consequently, the impugned assessment orders were set aside.
Facts
The petitioner challenged assessment orders for 2014-15 and 2015-16, which levied deficit tax based on the department's finding that the petitioner had undervalued Day Old Chicken. The undervaluation was determined by comparing the petitioner's selling price with that of KEPCO, a government undertaking.
Key Issues
Whether an assessing officer can reject an assessee's books of accounts and make a best judgment assessment solely based on a price difference with a Public Sector Undertaking (PSU) selling similar goods.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 24TH DAY OF JULY 2023 / 2ND SRAVANA, 1945 WP(C) NO. 6073 OF 2018 PETITIONER: M/S. VENKATESHWARA HATCHERIES LTD. DOOR NO.1/2016, KALLEKULANGARA.P.O.DHONI ROAD, PALAKKAD- 678 009 REPRESENTED BY ITS DY. GENERAL MANAGER(FINANCE & ACCOUNTS),M.G. VENUGOPALAN BY ADVS. SRI.HARISANKAR V. MENON SMT.K.KRISHNA SMT.MEERA V.MENON RESPONDENTS: 1 THE ASST. COMMISSIONER OF STATE TAX STATE GST DEPARTMENT,SPECIAL CIRCLE PALAKKAD- 678 001 2 THE COMMISSIONER OF STATE GST TAX TOWERS, KILLIPPALAMKARAMANA, THIRUVANANTHAPURAM- 695 005 RESHMITHA RAMACHANDRAN- GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WPC No.6073 of 2018 2 JUDGMENT Dated this the 24th day of July, 2023
Heard Sri.Harisankar V.Menon, learned counsel for the petitioner as well as Ms.Reshmitha Ramachandran, learned Government Pleader appearing for the respondents.
The petitioner has filed this writ petition impugning two assessment orders dated 01.12.2017 passed by the Assistant Commissioner of State Tax, State GST Department,
The judgment continues below.
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