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Informist, Tuesday, Nov. 26, 2024

 

NEW DELHI – The Supreme Court Tuesday rejected an order by the additional commissioner, commercial tax, Ghaziabad zone I, granting permission to Flipkart India Pvt. Ltd.'s assessing authority, the deputy commissioner for commercial tax, Ghaziabad, to reassess the company for assessment year 2012-13 (Apr-Mar) in the extended period of limitation provided under Section 29(7) of the Uttar Pradesh Value Added Tax Act, 2008. The court also quashed the consequent reassessment order passed by the deputy commissioner against Flipkart.

 

"The (Allahabad) High Court is justified in invoking writ jurisdiction as per the facts of the case," said the bench of Justice J.B. Pardiwala and Justice R. Mahadevan, and dismissed challenges by the state of Uttar Pradesh, additional commissioner of commercial tax, and other parties against the high court's judgment of Dec. 13.

 

The high court had rejected the tax department's reassessment on the ground that there was neither any relevant material nor any reason recorded by the assessing authority about any part of Flipkart's turnover having escaped assessment. Consequently, the high court said, the jurisdiction to reassess the company never arose with the assessing authority for the assessment year in question.

 

Flipkart had argued that the limitation period to make a regular assessment had expired on Sept. 30, 2016, and the revenue authority lacked any "reason to believe" that any part of the company's turnover had escaped assessment, making its attempt arbitrary.

 

The state government said the high court had failed to take into consideration the relevant provisions of law which proved that the condition of "recording reasons to believe" was not a requirement for initiating reassessment proceedings under Section 29(7) of the Uttar Pradesh Value Added Tax Act. A reassessment could be initiated under Section 29(7) even for a "change of opinion", the government said.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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