Ruckmani Electricals Vs Tamilnadu Sales Tax Appellate Tribunal (Madras High Court)
Madras High Court held that two equal time additions towards purchase suppression is unwarranted. Thus, two equal time additions deleted, however, addition towards purchase suppression and penalty u/s. 16(2)(d) of the Tamil Nadu General Sales Tax Act, 1959 sustained.
Facts- The petitioner is a registered dealer under the Tamil Nadu General Sales Tax Act, 1959. In respect of the period 2000-2001, an order of assessment was made under the Act on 30.09.2002. Prior to the proceedings for assessment, an inspection had taken place on 13.12.2000 and various discrepancies had been found.
In concluding the assessment, after providing appropriate opportunity to the assessee, the assessing authority made an addition on account of purchase suppression towards Aluminium winding wires of Rs.41,356/-, adding 15% towards freight and Gross Profit. Two equal time additions were made for probable omission for the previous period, till the date of inspection. An addition was also made towards sales suppression and second sales of electrical goods. Penalty in terms of Section 16(2)(d) of the Act at the rate of 150% was imposed in relation to the sales/purchase suppression.
First appellate authority allowed the appeal. However, Tamil Nadu Sales Tax Appellate Tribunal reversed the order of the first appellate authority allowing the State appeal.
