Auditor cannot File a Revised Return under the KVAT Act: Kerala HC [Read Judgment]

Income Tax - ICAI

In M/S, Modern Hospital Pharmacy V. CTO & Anr, the Kerala High Court clarified that there is no provision under the Kerala VAT Act enabling the auditor to file a revised return.

The bench was hearing a writ petition through which the assessee challenged the legality of the assessment orders passed under the KVAT Act. The assessee, a Pharmacy inside a hospital, filed statutory returns for the relevant years. The AO, as per the said orders found that the turnover conceded by the assessee is different from the turnover shown in the audit Statement filed under For 13 and 13A. The audit report showed sales far in excess of that shown in the return. The assessee maintained that the hospital charges were also included in the audit report and a revised report has been filed.

Dismissing the appeal, the bench noted that “Though there is a provision to revise the returns filed under the KVAT Act, there is absolutely no provision where the auditor could file a revised report. Considering also the factual disputes involved, this Court is not inclined to exercise discretion to interfere with the assessment orders under Article 226 of the Constitution of India. The petitioner would be left to the remedy available before the Appellate Authority.”

Read the full text of the Judgment below.

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