The Tax Publishers 2019 TaxPub(VAT) 0405 (Mad-HC) : (2019) 090 ITPJ (V) 0942

 

Tvl. New Bharath Hardwares v. Dy. CTO

 

TAMIL NADU VALUE ADDED TAX ACT, 2006

--Assessment--ValidityFailure to report purchases ----Where Court leads to the inevitable sequitur that JKM principle now governing the field and the procedure of making assessment with regard to a dealer being sale particulars of dealer's sellers without adhering to requisite norms was incorrect besides being unsafe, therefore, assessee was entitled to have order set aside on the ground that it was not in conformity with the order passed in the earlier round of litigation as besides being in violation of JKM Graphics Solutions Pvt. Ltd. v. CTO (2017) 99 VST 343 (Mad) : 2017 TaxPub(VAT) 0116 (Mad-HC)--Assessee was a dealer in Hardware. It was case of assessee that he was filing monthly returns and there was deemed assessment under section 22(2). Department issued show cause notice with regard to assessment year 2015-16, alleging that certain purchases effected by assessee have not been reported. Authority passed an Order adopting best judgment method under section 22(4). Held: Department, pursuant to JKM Graphics Solution case shall now be submitting a new centralized mechanism to be adopted as recommended by Single Judge in JKM Graphics Solution case. The Court led to the inevitable sequitur that JKM principle now governing the field and the procedure of making assessment with regard to a dealer being sale particulars of dealer's sellers without adhering to requisite norms was incorrect besides being unsafe. Therefore, it follows as a further sequitur that assessee was entitled to have order set aside on the ground that it was not in conformity with the order passed in the earlier round of litigation as besides being in violation of JKM Graphics Solutions Pvt. Ltd. v. CTO (2017) 99 VST 343 (Mad) : 2017 TaxPub(VAT) 0116 (Mad-HC).

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