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2010 (9) TMI 1095 - HC - VAT and Sales TaxLevy of tax on additional turnover - additional turnover arrived on the basis of electricity consumption - Whether the re-assessment made by the CTO for levying tax on the additional turnover worked out on the basis of electricity consumption communicated by the officials of the Vigilance and Enforcement Wing, is valid as per the facts and the law? Held that: - it cannot be said that estimation of turnover was made purely on the basis of electricity consumption only. In the case on hand, the Appellants, despite a written notice issued by the CTO, had failed to produce their Books of Accounts - the Appellants have not even offered any explanation, much less a reasonable and valid explanation, to show as to why the electricity consumption was more and there was no corresponding increase in the production. The CTO had sufficient material for coming to a conclusion as regards the consumption of electricity and he is therefore duty bound to make an estimate of the turnover on the basis of inspection material and other information available to him. The Appellants themselves failed to explain the reasons for not producing the Books of Accounts and other required information to the CTO. Under these circumstances, the Assessing Authority is authorized to finalise the assessment work by following realistic method in estimating the turnovers. Appeal dismissed - decided against appellant.
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