Case Details: K.N.Raj Constructions vs. State Tax Officer, Hosur [2026] 182 taxmann.com 183 (Madras)
Judiciary and Counsel Details
- C.Saravanan, J.
- B. Raveendran for the Petitioner.
- V. Prashanth Kiran, Government Adv. for the Respondent.
Facts of the Case
The petitioner challenged DRC-07 assessments involving tax, interest, and penalty. It was submitted that earlier adverse orders had been set aside with remand after recovery from its bank account. The Department of Revenue relied solely on the turnover reported in the Income Tax portal and treated the difference as taxable. The petitioner requested that the actual turnover be determined by examining records rather than relying solely on portal figures. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the significant discrepancy between bank receipts and the turnover reported in the Income Tax portal required forensic examination to determine the actual turnover. The Court observed that the previous assessments could not form a sufficient basis for final determination and directed that the matter be remitted to the concerned authorities for fresh orders on the merits. The assessment and liability were to be examined. The attachment of the petitioner’s bank accounts was ordered to be lifted upon making the deposit under Section 74 of the CGST Act.
List of Cases Referred to
- Girdhari Lal Nannelal v. Sales Tax Commissioner (1977) 39 STC 30 (para 13)
- Elmech Engineers v. CCE 2001 taxmann.com 1406/129 ELT 634 (CEGAT- Kolkata) (para 13)
- Suvarna Polymers (P.) Ltd. v. CCE 2000 taxmann.com 1378/120 ELT 148 (CEGAT- Chennai) (para 13)
- State of Tamil Nadu v. Indian Crafts & Industries (1970) 25 STC 466 (para 13)
- Tvl. Prasad Properties and Investment (P.) Ltd. v. State of Tamil Nadu [Tax Case (Revision) Nos. 119 to 121 of 2009, dated 21.03.2014] (para 13).
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