K.RAJAN Vs. STATE OF KERALA

JUDGEMENT

(1.) The revision arise from the order of the Tribunal which held against the assessee insofar as the assessee's contention, of there being no works contract with respect to 15 flats and two villas in a project of the assessee, having been negatived. The brief facts to be noticed are that the assessee, a builder, initiated two projects for construction of 136 apartments and three villas in contiguously lying properties. The assessee claimed that 15 flats and two villas in the project were not works contract for reason of no purchaser having entered into agreement for construction prior to its completion.

(2.) The assessee admittedly filed a compounding application for the assessment year which was permitted by the Department. However, while paying the compounded tax, the assessee excluded such payment on the sale consideration of 15 apartments and two villas. The discrepancy was noticed on inspection. The Assessing Officer issued notice and finalised proceedings after hearing the assessee, directing payment of tax at the compounded rate for the total consideration received for the said 15 apartments and 2 villas. The First Appellate Authority rejected the appeal and so did the Tribunal.

(3.) The assessee filed the above revision on the following questions of law, which we extract here- under:-