Assessment Order Was to be Set Aside as AO Failed to Exclude Purchase Pertaining to Pre-GST Period | Madras HC

Case Details: Tvl. Viveka Essence Mart v. Deputy State Tax Officer-II - [2024] 160 taxmann.com 375 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • T. Pramodkumar Chopda, Sr. Adv. & Ms P. Aruna Chopda, for the Petitioner. 
  •  T.N.C. Kaushik for the Respondent.

Facts of the Case

In the present case, the assessee challenged assessment order issued by Revenue Authority. It filed writ petition against the order and submitted that proceedings were initiated against assessee after audit, which led to issuance of intimation and show cause notice. But the assessment order was flawed on multiple grounds, including erroneous inclusion of purchase turnover from period before GST laws came into effect and incorporation of tax liability previously dropped by assessing officer.

High Court Held

The Honorable High Court noted that the assessing officer correctly excluded sales turnover of pre-GHST period but overlooked excluding purchase turnover for same period, as noted in findings regarding discrepancies. Additionally, although assessing officer initially dropped proceedings related to certain tax liabilities, the order incorrectly specified liability for those heads, indicating lack of attention to detail and justifying interference with assessment order.

Thus, the Court held that the impugned assessment order was liable to be set aside as it suffered from non-application of mind by assessing officer resulting in patent errors and matter was remanded for reconsideration.