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2009 (11) TMI 854 - MADRAS HIGH COURTWhether, in the facts and circumstances of the case and in law, the Sales Tax Tribunal was justified in setting aside the order of the Appellate Assistant Commissioner without finding any illegality in the order of the Appellate Assistant Commissioner partly allowing the appeal? Whether, in the facts and circumstances of the case and in law, the Sales Tax Tribunal was justified in treating the loan transaction as a sale also on the ground that the petitioners are not financiers? Whether, in the facts and circumstances of the case and in law, the Sales Tax Tribunal ought to have held that the levy of penalty was unjustified and illegal? Held that:- In a best judgment assessment, guesswork is inevitable but it should be a reasonable one. The AAC was justified in finding that the estimated assessment from serial Nos. 1 to 96 was unreasonable. In our considered view, the Tribunal was not justified in interfering with the order of the AAC in respect of slip No. 1 insofar as the estimated assessment. The Tribunal did not keep in view the documents produced by the assessee. The Tribunal was not right in saying that the amount could not have been taken from business. The assessee is a dealer in buying and selling of utensils having daily collections. Therefore, it cannot be said that the amount so paid to M/s. Reliance Electricals was a colourable device to evade purchase transaction. When the findings of the AAC were based on documents, the STAT was not justified in raising doubts and interfering with the findings of the AAC. In such view of the matter, the order of the STAT in respect of slip No. 3 cannot be sustained. Tax revision is partly allowed. Insofar as slip Nos. 1 and 3, the order of the STAT is set aside. Insofar as addition of ₹ 4,95,816 in respect of transaction with M/s. Kalaivani Metals, the order of the STAT remitting the matter back to the assessing authority is confirmed. The assessing authority shall consider the matter afresh after affording sufficient opportunity to the assessee and also to the Revenue and pass orders in accordance with law within a period of three months from the date of receipt of copy of this order.
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