The Allahabad High Court recently observed that the enhancement of turnover not necessary consequence for rejection of Books of Accounts under the Uttar Pradesh Value Added Tax (UPVAT) Act, 2008.
The counsel for the revisionist has submitted that the applicant is a registered dealer under the UPVAT Act and engaged in trading of ready-made garments and his business was commenced from assessment year 2014-15 and that on 27.9.2014 a survey was conducted in the business premisses of the revisionist and at the time of survey, the revisionist was not present at the spot.
It was submitted that at the time of survey business of the applicant was closed but the shop was opened for carpentry work and that during spot inspection, six loose documents were found which were relating to the transactions of previous assessment year when the revisionist was not in possession of the shop in question and same was being used by the erstwhile tenant.
The counsel for the state has supported the impugned order and submitted that at the time of survey, some loose papers were found on the basis of which the books of accounts have been rejected and enhancement has rightly been made which substantially has not been reduced by the appellate authorities, therefore, there is no good ground for interference of the Allahabad High Court as the revisionist could not controvert the genuineness of the documents seized by the authorities.
A Single Judge Bench of Justice Piyush Agarwal observed that “Once the findings of fact have been recorded in favour of the petitioner, there is no cogent reason for enhancing the turnover. The tribunal was not justified in confirming the enhancement of turnover in view of the fact that at the time of survey loose papers were found which have been explained by the revisionist and merely on that ground the books of account can be rejected but enhancement should not be made.”
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