Purchases on Behalf of Ex-UP Principals Not Taxable u/s 30(1) of UP Trade Tax Act: SC Dismisses Revenue Appeal
The tribunal, however, rejected this view after finding that the assessee had proved the transactions were made on behalf of the Ex-UP Principals.
UP - trade - taxact - Taxscan
UP - trade - taxact - Taxscan
The Supreme Court of India held that purchases made on behalf of Ex-UP Principals were not taxable under Section 30(1) of the UP Trade Tax Act and dismissed the Revenue’s appeal against the impugned order passed in revision by the State for the Assessment Year 2004-05.
The Revenue-appellant challenged the impugned order passed in revision by the State for the Assessment Year 2004-05. Sanjay Traders, respondent-assessee, had earlier secured favourable findings from the Assessing Officer, Joint Commissioner (Appeals), and the Tribunal, which held that the purchases were not taxable under Section 30(1) of the UP Trade Tax Act.
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Section 30(1) of the UP Trade Tax Act reads as “Power to set aside an order of assessment or an order in appeal
(1) In any case in which an order of assessment or penalty is passed ex parte, the dealer may apply to the assessing authority within thirty days of the service of the order to set aside such order and reopen the case; and if such authority is satisfied that the applicant did not receive notice or was prevented by sufficient cause from appearing on the date fixed, it may set aside the order and reopen the case for hearing:
PROVIDED that no such application for setting aside an ex parte assessment order shall be entertained unless it is accompanied by satisfactory proof of the payment of the amount of tax admitted by the dealer to be due.“
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The tribunal, however, rejected this view after finding that the assessee had proved the transactions were made on behalf of the Ex-UP Principals. It noted that all transactions were properly identifiable, verified, and recorded in the prescribed forms as well as in the books of accounts.
The Apex Court observed no valid reason to interfere with the findings and dismissed the appeal.
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