TMI Blog1983 (2) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, be made about them in the books of account till after the survey. At the time of the assessment proceedings this explanation of the dealer was considered but the assessing authority found that it was not true. The dealer was not able to establish that the arrivals mentioned in the loose papers had taken place in the earlier part of the day. The assessing authority also found that some of the transactions were not entered in the books of account at all though entries had been made in respect of some of the transactions entered in the loose papers in the books of account. The assessing authority, therefore, rejected the books of account and determined the taxable turnover of the dealer by best of judgment. It made an addition in the taxable purchases of foodgrains and oilseeds to the extent of rupees twelve lakhs and two lakhs. It also made some addition in the taxable sale of oil-seeds. The dealer failed to get the books of account accepted by the Assistant Commissioner (Judicial), Sales Tax, in appeal who, however, made some reduction in the taxable turnover. In a further appeal to the Sales Tax Tribunal also the dealer failed to secure acceptance of its accounts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date on which survey was made were not found entered in its books of account at the time of survey must be considered in the context of the totality of circumstances and the inference drawn must necessarily depend upon the time when the survey was made and the time at which those transactions had taken place. Illustratively, we may mention that there might be a transaction, like arrival of goods in the business premises of the dealer at a time when the survey was in progress about which no entry is found. It is obvious that it could not be insisted in such a case that the entries about the transaction must contemporaneously be made. There is no provision in the U.P. Sales Tax Act or the Rules framed thereunder requiring contemporaneous entries of such transactions in the books of account. Likewise, where arrivals had taken place at about the commencement of business in the day and the survey is made soon thereafter it would be too much to expect the dealer to make an entry although the transactions were prior to the time of survey. These are only illustrative situations. On the contrary, in a case where a transaction found to have taken place early in the day and no mention about ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced an amount of Rs. 1,000 and Rs. 10 for making purchases from Kanpur. In these circumstances and in the absence of any finding to this effect, it cannot be contended that no entries in respect of these transactions were made at all in the account books. The Judge (Revisions) Sales Tax, is the last fact-finding authority and it was open to him to accept the book version after considering the evidence...." It is clear from these observations that the Bench felt, in the circumstances of the case before it, that the acceptance of the explanation of the assessee could not be treated to be perverse or illogical. In Tarang Radio Company v. Commissioner of Sales Tax 1980 ATJ 19, C.S.P. Singh, J., observed as under: "A survey was held on the premises of the assessee, and the Surveying Officer found that the three radio sets had not been entered in the wireless stock register. The wireless stock register of the assessee was not ready. The assessee's explanation was that the sets were not entered in the stock register as they were in an incomplete stage. The Sales Tax Officer took this fact into account.............account books were rejected and an estimate of the turnover was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out transactions, which may have been entered into by him throughout the day, till the close of business that day so that the absence of entries about the transactions in the books of account at the time of survey during the day was not to be taken into account as a circumstances justifying the rejection of books of account. The report of the decision does not contain facts in sufficient details particularly with regard to the time when the survey was made nor has the learned judge given reasons for the view taken by him. It is, however, clear that the observation cannot be construed to mean that in each and every case where survey is made of the business premises of a dealer at any time of the day, an absence of the record of the transactions made by the dealer that day in the books of account could not be taken to be a circumstance justifying the rejection of its books of account. We have noticed the decisions, which were placed before us by the counsel for the parties, with a view to emphasise that it has not been laid down as a matter of law by this Court that where transactions entered in to by a dealer on the day on which his business premises are surveyed are not found inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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