Zudaida Khatoon Memorial Charitable Society Vs Commissioner Commercial Tax U.P. (Allahabad High Court)
Summary: The Allahabad High Court allowed the revision filed by Zudaida Khatoon Memorial Charitable Society against the order dated 12.03.2020 passed by the Commercial Tax Tribunal, Bench-1, Prayagraj in Second Appeal No. 10 of 2020 for Assessment Year 2014-15. The revision was admitted on 17.06.2020 on questions concerning rejection of books of account despite absence of incriminating material during the survey dated 25.02.2015 and the Tribunal’s justification for determining turnover from sale of Iron & Steel at Rs.1,25,00,000/- and imposing tax of Rs.5 lacs without material evidence.
The revisionist submitted that its business premises had been surveyed on 25.02.2015 at five different places, but no material was seized indicating suppression of purchases or sales. It was submitted that the books of account were maintained on a computer and could not be produced during the survey because the accountant was ill. The revisionist contended that the books were rejected merely because they were not shown at the time of survey and that the consequent turnover enhancement had been made without any material establishing suppression.
It was further submitted that the revisionist was engaged in manufacture and sale of agricultural implements exempted under the UP VAT Act and also manufactured Iron Almirah, Steel Box etc. According to the revisionist, the assessing authority had enhanced turnover by treating purchases of iron and steel as having been sold without being used in manufacture of agricultural implements, although no suppression had been found during the survey.
