Vat on hotel food sales

A.R.JOSHI (Querist) 12 September 2011 This query is : Resolved
The assessing officer wants to assess the food sales of hotels @ 5 times of administrative expns like wages, fuel etc instead of actual sales declared for the asst year 2008-09 and 2009-10. What is the basis. Any directions issued by the authority.Any case laws opposing the move.

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Raj Kumar Makkad (Expert) 12 September 2011
Assessing Officer is not empowered to initiate any illegal act contrary to law and if his assessment is wrong or order is wrong then you have opportunity to challenge it before higher officials.

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