TURNOVER DECLARED UNDER THE INCOME TAX LAW CANNOT BE CONSIDERED AS EVIDENCE OF TAXABLE SUPPLIES UNDER THE SALES TAX ACT

It was observed by the Honorable High Court that “the Assessing Officer while determining the tax liability of the petitioner has entirely based its findings on the information relating to the turnover of the petitioner in his income tax returns, therefore, it was not lawful for the Assessing Officer to have determined the liability of the petitioner under the Act on the basis of information received from the income tax department/income tax returns. Hence, the very foundation of the assessment is based on alien consideration, therefore, the edifice built upon has to crumble.”

2025 PTD 556 (PHC)