Topic
Allahabad High Court rules that tax authorities cannot enhance disclosed turnover under the UP VAT Act without cogent adverse material. Best judgment assessment requires evidence beyond mere non-production of books, reinforcing safeguards for taxpayers against arbitrary tax demands.
The Allahabad High Court ruled that amusement rides like swings and jhoolas do not fall under Entry 32 of the U.P. Trade Tax Notification, which covers goods for indoor or outdoor games. This clarifies that such rides must be taxed at the default 10% rate as unclassified items, impacting amusement park operators and tax assessors nationwide who rely on narrow statutory interpretations.
Madras High Court rules that tax demands issued solely via online portal without proof of actual receipt are procedurally invalid, even if the assessee failed to intimate business closure. The court reduced the pre-deposit condition from 50% to 25% of the disputed tax and mandated fresh adjudication within two months, reinforcing strict compliance with statutory notice procedures.