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2019 (8) TMI 6 - ALLAHABAD HIGH COURTValidity of assessment - rejection of Books of Accounts - enhancement to the undisclosed turnover - HELD THAT:- In the absence of any credible explanation being submitted with respect to the three non-serialled used invoice, books seized from the assessee which record transactions of about ₹ 25,00,000/-, it has to be accepted that the Tribunal had not made any error in affirming the finding of rejection of the books of account as clearly the assessee was found maintaining parallel books. Insofar as the estimation of turnover is concerned, by way of first principle, it remains undisputed that certain amount of guess work is necessarily involved in such cases. Purchase of raw material - assessee would submit that the assessing officer had recorded categorical finding that no physical verification of stock was made at the time of survey and therefore, no adverse inference may be drawn thereon - HELD THAT:- It appears that that finding can never be read in isolation in face of Exhibit Nos.4, 5 and 6, as discussed above. Once the assessee was found to have manufactured and sold goods outside its books, the estimation of undisclosed purchase of raw material was a natural consequence of that finding. The fact that the central excise and state excise authorities may not have found or considered that material to be adverse, may only be relevant for proceedings under those Acts and not for the present proceeding where the assessee has been found to have dealt with goods outside its books. Revision dismissed.
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