GOVERNMENT OF KARNATAKA

(Department of Commercial Taxes)

NO.ADCOM/ENF/SZ/AC-V/INS- 14/13-14 Office of the Addl. Commissioner of
Commercial Taxes (Enforcement),
South Zone, V.T.K.II, 6th Floor, 80
Feet Road, Near National Games
Housing Complex, Vivek Nagar Post,
Koramangala, Bangalore.47.
Dated 29-01-2014

CATEGORY: B

INTELLIGENCE REPORT


1 Name and address of the
dealer
M/s. Sha Vasthimal Banaji & Co.
154/55, A.S. Char Street,
BVK Iyengar Road,Bangalore-53
2 Additional places inspected Nil
3 TIN 29910132450
Assignment No. 15853782/27-09-2013
4 Date of inspection 26-09-2013
5 Nature of business Traders in electrical goods and appliances
6 Books of accounts produced
for verification
Purchase and sales register, Purchase and
sales invoices, VAT returns
7 Books of accounts seized Nil
8 Period to which the report is
related
13-14 under KVAT Act
9 Name & designation of the
Inspecting Officer
Sri M.B.Harishbabu
ACCT(Enf)-V, SZ, Bangalore.
10 Name & designation of the
person in charge
Sri Dinesh Jain, person in-charge



BRIEF DETAILS OF THE INSPECTION:


The placeof business of the above dealer was inspected on 26-09-2013. At
the time of inspection Sri Dinesh Jain, person incharge was present, produced
the books of accounts and attended to the entire inspection proceedings.


Contd.2/-
As per the assignment allotted and issued, the place of business was
inspected on 26-09-2013. On the date of inspection the manager of the concern Sri.
Dinesh Jain person incharge was present.He has produced sales and purchase registers
and bills. They are verified. The business is medium and the dealer procures goods from
local dealers in majority and also in the course of interstate also.The sales in electrical
appliances are local and tax collected . Returns are filed regularly. The details of physical
stock of goods held at the tome of inspection was taken and the same was compared with
the books of account produced at a later date in office. The details are as follows,

As per accounts:

Opening stock value : 5.5% Rs. 6,13,466-00
14.5% Rs. 1, 26,03,049-00
-------------------------
Rs. 1,32,16,515-00

Purchases up to date of
Inspection 26-09-2013
5.5% goods Rs. 1,50,921-00
14.5% Rs. 1,80,84,542-00
-------------------------
Rs. 1,82,35,463-00
-------------------------
Total Rs. 3,14,51,978-00



Less Sales up to the date of inspection


5.5% goods Rs. 1,34,102-00
14.5% Rs. 1,67,49,275-00
------------------
Rs. 1,68,83,377-00
Less G.P Rs. 8,34,540-00
---------------------- Rs. 1,60,48,837-00
5.2% as per trading a/c for 2012-13 ----------------------

Value of physical stock as on the
Date of inspection
as per accounts Rs. 1,54,03,141-00
value of physical stock actually found Rs. 1,51,29,280-00
----------------------
Difference Rs. 2,73,861-00
----------------------

In addition to the above the dealer had sold old car for Rs. 80,000/- which was
purchased for Rs. 1,40,000/- The dealer is liable to pay tax on that sale also. In
response to the notice issued on the above lines the dealer has replied stating that there
is a misclassification in arriving at the difference in stock to alittle extent and he has
admitted a liability of Rs. 39,611/-.
the dealer agreed the above and discharged the tax voluntarily through DD No. 503302 dated 20-
12-2013 for Rs. 40,000/- drawn on Corporation Bank, City Market Branch Bangalore.

From the above, it is evident that, he is not maintaining true and correct books of account
thereby contravened provisions of the Act. Non-maintenance of proper books of accounts is an offence
punishable under Section 74(1) of the Act. Therefore, on propose to levy penalty of Rs.5000-00, the dealer
has agreed and paid Rs. 5000/- vide Reciept No. 32831 dated 18-12- 2013



I am forwarding herewith the above information to utilise the said
information while concluding the /re-assessment of the dealer. The result of
action taken may please be intimated to this office for records.


Receipt of this report may please be acknowledged.



Asst. Commissioner of Commercial Taxes
(Enforcement)-5 South Zone.,Bangalore.

To

The Joint Commissioner of
Commercial Taxes(Admn.)
Divisional Vat Office-I
Bangalore.

Copy to the LVO 010 for information.