The Commissioner Commercial Tax U.P. Lucknow vs. S/S Hari Sons INDIA Products
Held
The High Court held that the revision lacked merit and was accordingly dismissed. The Court found that the Tribunal's findings were findings of fact based on material and evidence on record. Specifically, the Court noted that the estimated turnover of Rs. 40 lakhs sustained by the Tribunal was more than twice the concealed turnover of Rs. 18 lakhs that had been detected. The Court also acknowledged the Tribunal's reasoning that there was no justification to make the estimation beyond the period of the survey. Therefore, the Court found no good ground to interfere with the Tribunal's order in its revision jurisdiction.
Facts
The Commissioner of Commercial Tax, U.P. filed a revision against an order of the Commercial Tax Tribunal, Allahabad. The Tribunal had partly allowed an appeal by the assessee, S/S Hari Sons India Products, reducing an estimated turnover. The assessment period in question was April 2017 to June 2017, prior to the implementation of GST. During a survey on April 26, 2017, concealed turnover of Rs. 18 lakhs was discovered. The assessing authority rejected the assessee's books of accounts and estimated the concealed turnover at Rs. 80 lakhs. This was enhanced to Rs. 5 crores in the first appeal. The Tribunal, while upholding the rejection of books, reduced the estimated turnover to Rs. 40 lakhs, reasoning that estimation should not extend beyond the survey period.
Key Issues
1. Whether the Tribunal erred in law by reducing the estimated turnover to Rs. 40 lakhs, which was significantly higher than the detected concealed turnover of Rs. 18 lakhs, despite upholding the rejection of books of accounts? Revenue's Contention: The revenue argued that the Tribunal's reduction of the estimated turnover was unjustified, especially considering the detected concealed turnover and the rejection of the assessee's books. They likely contended that the estimation should have been more substantial to reflect the true turnover. The revenue relied on the findings of the assessing authority and the first appellate authority. Assessee's Contention: The assessee argued that the Tribunal's estimation of Rs. 40 lakhs was reasonable and that the estimation should not have been made beyond the period of the survey. They likely contended that the Tribunal correctly applied its mind to the facts and evidence on record to arrive at a fair estimation.
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Court No. - 38 Case :- SALES/TRADE TAX REVISION No. - 133 of 2022 Revisionist :- The Commissioner Commercial Tax U.P. Lucknow Opposite Party :- S/S Hari Sons India Products Counsel for Revisionist :- Avinash Chandra Tripathi Hon'ble Saumitra Dayal Singh,J.
Heard Sri A.C. Tripathi, learned counsel for the revenue and Sri Shubham Agrawal, learned counsel for the assessee.
Present revision has been filed by the revenue against the order of the Commercial Tax Tribunal, Allahabad Bench-I, Allahabad dated 20.12.2021 passed in Second Appeal No. 67 of 2021 for A.Y. 2017-18 (U.P.). By that order, the Tribunal has partly allowed the assessee's appeal and reduced the estimated turnover (on best judgement assessment basis).
Having heard learned counsel for the parties and having perused the record, no good ground is made out to offer any interference in revision jurisdiction. The assessment for the period April, 2017 to June, 2017 (i.e. prior to GST), the assessee had disclosed the turnover to Rs. 2.65 crores. In the course of survey dated 26.04.2017, concealed turnover of Rs. 18 lakhs was discovered. Acting on that, the assessing authority has rejected the books of accounts and es
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