TMI Blog1996 (10) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... eral Sales Tax Act, 1963 reopened the assessment on the ground that the said quantity had been omitted to be assessed in the final assessment for the year 1985-86. Thus the subject-matter is the exercise of powers under section 35 of the Act and the order (annexure II) thereto as confirmed by the Kerala Sales Tax Appellate Tribunal, Additional Bench, Ernakulam (annexure III therein). However with regard to the assessment year 1986-87 (subject-matter of T.R.C. No. 21 of 1994), after the assessee filing form No. 8 with regard to the year ending on March 31, 1987 declaring a total and taxable turnover of Rs. 9,32,13,732.11 deals with the situation as a result of rejection of the return and the accounts, proceeding with the estimate in regard thereto. In this context the items concerned with the process of estimation, curiously the first one being of Calicut dump with regard to 1175.20 m.tons in connection with the dumping agent Messrs. Venad Agencies. There is no dispute that with regard to the same item for the assessment year 1985-86 the proceedings have been reopened. It is obvious that as far as the two assessment years, for 1985-86 the situation is of reopening under section 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged that there is a civil litigation between the assesseeCorporation and Messrs. Venad Agencies, both having filed suits a well-organised vigilance wing at the head office, all leading to the discrepancies in the concerned matters has proceeded to observe yet at the time of verification of the accounts for the year 1985-86. The transactions were not brought to the notice, revealing the closing stock at Calicut dump at 1175.20 m.tons. 10.. In regard to this Calicut dump of 1175.20 m.tons and also with regard to 160.35 m.tons of cement as shortage and damage in transit the explanations have been brushed aside because the assessing authority sought for support by way of corroboratory evidence to prove their claims. The assessing authority keeping in mind and recording so to that effect with so many internal checks and balances assuring the attitude of responsibility with reference to the explanations cannot be understood to look for support by way of corroboration. Reading the reasoning of the assessing authority placing on record in one breath the internal checks and balances and seeking support and that too in the matter of estimation is a situation relating to the inference from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh ordered in their favour: As a result it is concluded in regard thereto that the incident during 198586 would have no relevance to the incident of the year 1986-87. We are not left without a feeling that this is a result of the convenient confusion to deal with the situation and in this connection what has been contended by the assessee in reply to the notice has been totally ignored. 14.. Same is the situation with regard to the delivery notes in form No. 26 issued for transport of cement and the corresponding stock register in form No. 19B that were lost by the Corporation. In the reply it is found that this loss has been published in the newspaper and it was also intimated to the Sales Tax Department. Even this is rejected and it is observed that the copy of such advertisement is not placed on record. 15.. It is well-established that inferences are very important in such matters. Although facts speak for themselves, in the process of estimation the basis edifice requires to be neatly understood and appreciated. In the context the attitude is expected to be really after keeping in mind what has been already recorded by the assessing authority. The assessing authority havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on has been placed on record and this is in the light of the situation that with regard to the same amount and transaction relating to Calicut dump for one year 1985-86, it is sought to be opened under section 35 of the Act and with regard to the subsequent year it is sought to be added on estimation as discussed hereinbefore. 19.. We have carefully seen the entire material on record apart from the three orders. In our judgment the approach based on the inferences and that too relating to the process of estimation would have to be termed as erroneous in law. The material on record does not reveal any aspect of rejection of accounts unless we also continue to see the situation with suspicion as has been done by the authorities below. The assessee-Corporation has submitted the returns well within time. They have been represented and all material is placed on record. Apart therefrom on the basis of the above factors leading to the initiation of the proceedings for the two years as stated above it is not possible to justify them, both with regard to the reopening as well as with regard to the rejection of accounts and proceeding to have resort to the best judgment. In our judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
