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2011 (6) TMI 713 - HC - VAT and Sales TaxWhether, in the facts and circumstances of the case, the Sales Tax Appellate Tribunal was right in law for application of the formula on the ground of non-maintenance of day to day stock book for the purpose of making best judgment assessment under section 12(2) of the Act? Held that:- The assessing officer is justified in restricting the claim of exemption on second sales and levying tax on the turnover of ₹ 6,97,542 and is based on valid materials and evidence and we do not find any error or illegality in the order of the Tribunal to interfere with the finding restricting the exemption in respect of the turnover by adopting the formula and restricting the claim of second sales. In respect of penalty, the Tribunal is not correct in levying penalty of ₹ 43,945 for the assessment year 1993-94 because certain discrepancies was found by the assessing officer in adopting the formula and made addition. It is also seen from the records that the figures and other things are taken from the account books only, otherwise the addition is made only on the estimation and therefore, we are of the view that it is not a fit case for levying penalty since the authorities restricted the claim by adopting formula and not as a concrete basis. We answer the question in favour of the assessee and against the Revenue and the appeal is allowed.
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