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2014 (5) TMI 254 - MADRAS HIGH COURTWhether Tribunal by omitted to consider relevant evidence and renderred findings based on no evidence – Omission of evidence – Stock Variation – Suppression of turnover - Non-maintenance of account - Held that:- Inspection report reveals that as a manufacturer, the assessee had not maintained the manufacturing account, nor had it shown the purchase of materials made locally as well as from other States which are sold in the State either as fabric or as readymade garments - Given the fact that the assessee is not just a trader alone, but a manufacturer too, the basic document that one has to maintain is the manufacturing account, since the verification as to the correctness of the claim starts only from thereon - Thus, the admitted case that the assessee had not maintained the manufacturing account, clearly pointed out to the difficulty in arriving at the stock variation. When the Revenue admits that the materials purchased could not be said as with reference to sale of readymade garments alone, in fairness to the claim of the assessee, AO as well as Tribunal should have adverted to this fact while arriving at the stock variation - Thus, while confirming the reasoning of the Appellate AC, it is hold that in arriving at the stock difference, instead of Rs.32,16,462/- as unaccounted stock available, the Officer should have taken note of the stock of finished goods at Rs.25,36,344/- to arrive at the stock difference for the purpose of working out the liability - Except for this modification, order passed by the Appellate Assistant Commissioner is confirmed - Thus, order of Tribunal is set aside and thereby remand the matter back to AO to arrive at the stock difference, taking the actual stock at Rs.25,36,344/- and the stock difference at Rs.34,22,639/- and assessment order passed thereon. Levy of Penalty – Held that:- In arriving at the penalty u/s 12(3)(b) at 50%, AO shall, however, exclude the additional tax portion, since the provision regarding the levy of penalty on additional sales tax was introduced in the statute book in the year 1997 - Hence, the same was not available during the material assessment year 1991 – Decided partly in favour of assessee.
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