TMI Blog1987 (7) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... e deals in motor parts, fuel ejection pumps, etc., at Indore and is assessed to tax as a dealer under the Act. For the period from 1st April, 1970 to 31st March, 1971, the assessee disclosed in its return gross turnover at Rs. 3,73,969. The report of the investigation by the Flying Squad revealed that the Manager of the assessee-firm had furnished some papers and diaries, which disclosed transactions, which had not been entered into the account books of the assessee. The assessing authority, however, came to the conclusion that there was no definite evidence that the business transactions revealed in papers seized from the Manager of the assessee, who had a dispute with the assessee and had been removed, were done at the instance of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Revenue. The learned President of the Board held that the proper course in the case would be to consider the transactions noted in the diaries or in the loose papers found in the possession of the former employee of the assessee in detail and only that transaction, which appeared to be bogus in the light of the evidence available, should be excluded from consideration. The Board, therefore, set aside the order passed by the first appellate authority and remanded the case to the assessing authority to pass an order afresh. Aggrieved by that order, the assessee sought reference but as the application filed by the assessee in that behalf was rejected, the assessee filed an application in this Court under section 44(2) of the Act. That appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affirmed the finding of the assessing authority as well as that of the Appellate Assistant Commissioner that there was no material to show that the assessee had clandestinely entered into transactions revealed from the papers seized from its former employee, any further enquiry to fish out some information against the petitioner was not justified, as held by the Andhra Pradesh High Court in [1974] 34 STC 195 (Panduranga Rice Mill v. State of Andhra Pradesh). Our answer to the question referred to this Court, is, therefore, in the affirmative and in favour of the assessee. 5.. Reference answered accordingly. Parties shall bear their own costs of this reference. Reference answered in the affirmative. - - TaxTMI - TMITax - CST, VAT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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