Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 2014 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 496 - SC - VAT and Sales TaxEvasion of Tax – Reduction in sale amount -Absence of bills - Method of recording receipt - No specific method to record receipt - Representative sample - Representative sample of 2 days bills - Business of manufacture and sale of sweets, namkeens and other eatables - Held that:- It appears from the record that when an individual customer was buying eatables of a nominal value, possibly bill was not being issued - There was no specific method whereby each and every receipt from the buyers was recorded by the assessee - On the basis of the receipts of two days collected from inspection, considering them as a representative sample, AO had come to a conclusion that the sale proceeds or sales of assessee for the year should have been a particular amount and, in fact, the amount reflected in the books of accounts was much less than the calculations arrived at by AO. Issuance of Notices – Maintenance of Books of accounts - Oblique motive – Imposition of Penalty - Held that:- AO did not jump to a conclusion without any rhyme or reason - There was a reasonable basis for him to arrive at the said conclusion, especially when the assessee did not offer any satisfactory explanation in spite of issuance of notice - Assessment orders refer to notices issued to the assessee and they also record the fact that no satisfactory explanation had been offered by assessee to make out a case that there was some special reason for which sale of sweets, namkeen etc. on 9th and 10th March, 2000 was exceptionally more – Once AO had rightly come to the conclusion that the books of accounts were not properly maintained and were not reflecting each and every transaction - Once it is found that with some oblique motive, effort was made to show lesser sale proceeds than the actual, the orders imposing penalty can not be questioned - Therefore, This court is not inclined to interfere even with the quantum of penalty - The impugned judgment delivered by the High Court is just and proper - Appeals are dismissed – Decided against assessee.
|