DRAGON INN Vs. COMMISSIONER, COMMERCIAL TAX
HIGH COURT OF UTTARAKHAND
COMMISSIONER, COMMERCIAL TAX
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Barin Ghosh, C.J. -
(1.) ON April 14, 2004, a survey was conducted in the eatery of the revisionist -assessee, when it transpired that from morning to evening up to about 6.50 p.m., the sale was around Rs. 3,000. On the basis of the survey report, the assessing officer concluded that the daily sale would be about Rs. 20,000. Therefore, the assessing authority assumed that from 6.51 p.m. until about 8.30/9.00 p.m., the sale will be about Rs. 15,000. There was no basis of the said assumption. On the basis of the said assumed figure, the turnover for the financial year 2004 -05 was assessed at Rs. 59,00,000. The matter went before the Appellate Commissioner and, later, before the Tribunal, at the instance of the revisionist -assessee. When the matter was concluded before the Tribunal, by that time, the assessment for the financial years 2005 -06 and 2006 -07 was complete. During the said financial years, the assessing authority accepted that the annual turnovers for the said years were Rs. 2.63 lacs and Rs. 5.15 lacs, respectively. Before the matter was concluded by the Tribunal, assessment for the financial year 2007 -08 was also completed when the assessing officer was satisfied that the turnover for the said financial year was less than the taxable financial limit. The appellate authority fixed the annual turnover for the financial year 2004 -05 at Rs. 12.40 lacs and the Tribunal fixed the same at Rs. 27.75 lacs. The fact remains that while the appellate authority proceeded on the basis that the daily sale was Rs. 3,500, the Tribunal held that the daily sale was Rs. 10,000. Tribunal, ultimately, assessed the taxable turnover at Rs. 27.75 lacs. Apart from the finding that on April 14, 2004, revisionist -assessee had sold Rs. 3,000 worth of food from morning till 6.50 p.m., there was nothing else available for the assessing authority or the appellate authority or the Tribunal to reasonably assess the turnover for the said financial year. In addition to that, the fact remains that the turnovers for the subsequent years were accepted at substantially low figures. In the circumstances, the conclusion would be that neither the assessment by the original authority, nor the assessments by the appellate authority or by the Tribunal are sustainable. They are, accordingly, quashed. The matter is remitted back to the assessing authority to make a fair assessment on the basis of materials available on record. While proceeding de novo, it is hoped and expected that the assessing authority will give reasonable opportunity of hearing to the revisionist -assessee.
(2.) COMMERCIAL tax revision stands disposed of.;
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