Assessing Authority Not Bound By Appellate Tribunal’s Observations In De Novo Assessment: Madras High Court
The Madras Excessive Courtroom has acknowledged that the assessing authority is just not sure by the appellate tribunal’s observations in a De Novo evaluation.
Justices Anita Sumanth and N. Senthilkumar opined that whereas concluding the evaluation de novo, the assessing authority is just not sure by the observations made by the primary appellate authority.
In this case, the Industrial Taxes Division has filed the enchantment difficult the order of the Tamil Nadu Gross sales Tax Appellate Tribunal referring to the interval 2013-14.
The evaluation had been accomplished, bringing to tax the turnover from the sale of plant and equipment, and different workplace equipments, together with revenue on the sale of aforesaid objects and revenue on the sale of constructing and gross sales turnover on previous and used autos. Penalty was imposed beneath Part 27(3) of the Tamil Worth Added Tax Act, 2006.
It is the rivalry of the assessee that the aforesaid evaluation was unhealthy in legislation because the turnover must be reckoned on the idea of a stoop sale offered to at least one S.V.G. Exports Personal Restricted on ‘as is the place is foundation’.
The matter had travelled in enchantment earlier than the primary appellate authority, who rightly famous that if in any respect the sale consideration must be taxed on stoop sale foundation, the settlement ought to have been seemed into to determine the intention of the events.
The matter was therefore remanded to the file of the Assessing Authority. Nevertheless, sure observations have been made whereas remanding the difficulty, aggrieved by which, the State went in enchantment earlier than the Tribunal. The Tribunal has merely confirmed the order of the primary appellate authority.
The division submitted that the State is just not solely per se aggrieved with the remand, however solely by the observations made by the primary appellate authority whereas remanding the matter as that may stand in the way in which of the Assessing Authority in figuring out the difficulty correctly and afresh.
The bench acknowledged that “whereas concluding the evaluation de novo, after listening to the assessee, the Assessing Authority shall not be sure by any of the observations made by the primary appellate authority and shall proceed with the matter strictly in accordance with legislation, making use of his thoughts independently to the information and circumstances.”
In view of the above, the bench confirmed the order of remand.
Case Title: The State of Tamil Nadu v. Tvl. Aro Granite Industries Ltd.
Case Quantity: Tax Case No.64 of 2025
Counsel for Petitioner/ Division: V. Prashanth Kiran
Counsel for Respondent/ Assessee: Saravana Selvi P.
