M/S. R.K. Traders, R.R. Dist. vs. Commercial Tax Officer, Hyderabad.
Held
The Court held that a second audit for the same period, after an initial audit and assessment, is impermissible without proper authorization from higher authorities. The impugned assessment order was passed in excess of jurisdiction.
Facts
The petitioner's business premises were audited, and differential tax was collected. Subsequently, a second audit was conducted for the same period, leading to a fresh assessment order for additional tax, penalty, and interest. The petitioner argued that a second audit for an already assessed period was impermissible.
Key Issues
Whether a second audit and assessment can be conducted for a period already audited and assessed. Whether the authorization for the second audit was valid.
Sections Cited
Section 43, Rule 59(2), Rule 59(1)(a)(ii)(b), Rule 59(1)(a)(ii)(d), Rule 59(7)
AI-generated summary — verify with the full judgment below
Between: M/s- R.K. Traders, , Re Narayana 4-'1-86/'l , Nehr [ 348s ] p.by its Partner Ir,4r.K.Radha Krishna,S/o.K.Lakshmi u Gunj, Tandur, ...PETITIONER IN THE HIGH GOURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY,THE FIRST DAY OF DECEIVBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO WRIT PETITION NO: 22989 OF 2008 AND Commercial Tax Officer Firozguda Circle Hyderabad ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the Hrgh Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ order or direction in declaring the assessment order dt.26-08-2008 passed by the respondent in demanding sales tax once again for the period from dt.01-04-2005 to 31-10-2006 for which the business premises was already audited by the Commercial Tax Officer, Bala Nagar Circle, Hyderabad, which includes period from dt.01-04-2005 to 31-10-2006 in levying sales tax of Rs.97,180/- penalty of Rs.97,180/-, and interest of Rs.38,2961 in one single order as illegal, arbitrary, contra
The judgment continues below.
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