KATHMANDU: The Supreme Court of Nepal has made public the full text of its judgment regarding the tax evasion case involving Bhatbhateni Super Market and Departmental Store Pvt. Ltd.
The judgment, delivered by the full bench of the court, upholds the decision of the Inland Revenue Department, confirming that Bhatbhateni evaded taxes by submitting false and fake invoices for goods purchased between August 2007 and February 2011.
The Inland Revenue Department had originally assessed Bhatbhateni’s tax liabilities to be Rs 226.744 million, including additional fees, after it was discovered that the company had submitted invoices for goods worth over Rs 710 million from 152 different companies.
These invoices were found to be fraudulent, and the company failed to pay taxes accordingly.
The Supreme Court’s full bench reaffirmed the tax assessment made by the Inland Revenue Department and the subsequent decisions made by the Revenue Tribunal in Kathmandu.
According to the court, the evidence presented clearly showed that Bhatbhateni’s actions were deliberate in evading taxes.
Pointing out that the company had been given ample opportunity to defend itself, the court rejected Bhatbhateni’s claim that it had been denied the chance to present its case before the tax fines were imposed.
The court’s ruling on January 13, 2020, and the upholding of earlier decisions indicate that the tax assessments and fines were justified. The judgment also highlighted that Bhatbhateni’s argument about discrimination in the fines imposed on taxpayers was unfounded.
While the majority of the bench supported the tax assessment, Justice Kumar Chundal expressed a different opinion.
In his dissenting view, Justice Chundal noted that he did not believe further action was necessary in this case, as his opinion was in the minority.
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