Laxmi Narayan Bhandar vs. State Of Orissa
Held
The Court held that the authorities were justified in not accepting the reversal of ITC as the revised returns were filed beyond the statutory limitation and after the receipt of the notice for tax audit. Consequently, the demand raised and the penalty levied were upheld.
Facts
The assessee sought to reverse wrongfully claimed Input Tax Credit (ITC) by filing revised returns after an audit detected the error. However, these revised returns were filed beyond the statutory limitation period.
Key Issues
Whether the authorities can accept a reversal of ITC in revised returns filed beyond the statutory period and after audit proceedings have commenced. Whether penalty can be levied in the absence of malafide intention to evade tax.
Sections Cited
Section 33(4), Section 33(5)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER 07.12.2022
1. Two questions were framed by this Court for consideration in the present revision petition while admitting it on 20th November, 2017:
“(1) Whether in the facts and circumstances of the case, the learned Authorities below are justified in not accepting the reversal made by the Petitioner in the returns when the same were submitted prior to reassessment and determining the CTO and TTO without giving credit to the tax paid upon such reversal?
(2) Whether in the facts and circumstances of the case, the learned Authorities below are justified in levying penalty in absence of any finding with regard to the malafide intention of the Petitioner to evade or avoid tax or any allegation with regard to suppression of purchase or sales or both or contravention of any provisio
The judgment continues below.
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Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.