TMI Blog2003 (6) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... respectively claiming exemption on a turnover of Rs. 82,908. There was an inspection of the business premises of the assessee on May 28, 1993 and a shop inspection report was prepared. Subsequent verification of the books of account with the shop inspection report showed that there was stock variation to the tune of Rs. 73,488. The assessee had admitted the offence before the Intelligence Officer and remitted a sum of Rs. 4,500 as compounding fee. Based on these materials, the assessing authority proposed to reject the books of account and return filed by the assessee. He accordingly issued a pre-assessment notice. The assessee filed objection to the said notice, wherein, the assessee had contended that there is no stock variation at all a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate authority also noted that on perusal of the records, it is seen that the Intelligence Officer took physical stock of 17 items and on verification of this stock ascertained with the books of accounts, stock variation in 14 items were detected and the suppression detected comes to Rs. 73,488. The appellate authority also noted that as per the monthly return filed, the taxable sales accounted up to May 31, 1993 comes to Rs. 3,64,964.65, and the unaccounted sales detected up to May 28, 1993 comes to Rs. 73,488. He found that the suppression detected comes to more than 20 per cent of the taxable sales conceded. He also noted that though there will be substantial sales during festival seasons like Onam, X-mas, Ramzan, etc., the records reveal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of account were written up to date and that it reflects all the transactions which had been effected, the assessing authority has clearly found stock variation on certain items. This has been accepted by the two appellate authorities also. In these circumstances, we also confirm the rejection of the accounts. 3.. However, coming to the question that estimation of turnover by making additions to the returned turnover, we find that the materials available before the assessing authority was mainly the details gathered in the inspection conducted on May 28, 1993, and the compounding of the offence by the assessee. That apart, the first appellate authority has also noted that though certain sales are depicted in the sale bills, the same h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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