9911796707
TMI Blog2007 (8) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... r. In the return filed for the assessment year 1993-94, the petitioner reported a total and taxable turnover of Rs. 13,21,125. The assessing authority, third respondent herein, made a best of judgment assessment based on the results obtained in an inspection conducted on April 1, 1993, determining the total and taxable turnover at Rs. 20,93,957. The inspection results showed the following: (i) Carbon copies of pay-in-slips for the period from April 1, 1993 to March 3, 1994 was not preserved and produced. (ii) Purchase of milk was not supported by bought vouchers. (iii) Purchase of kerosene and groundnut was not supported by purchase bills. The assessing authority rejected the book results, determined the turnover for the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal and allowed the enhancement. On the question of the addition made under section 7A, the Tribunal deleted the assessment on kerosene under section 7A. However, it confirmed the addition under other items with gross profit at 10 per cent. The Tribunal further confirmed the turnover Rs. 83,180 being the difference of turnover wrongly deducted claiming exemption of tax. The Sales Tax Appellate Tribunal directed the imposition of penalty on the basis of the turnover upheld and restored in the execution petition. The aggrieved assessee filed a tax case before the Tamil Nadu Taxation Special Tribunal challenging the order of the Tribunal. By order dated April 25, 2003 in T.C. (R.) No. 149 of 1999, the Tamil Nadu Taxation Special Tribunal di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the jurisdiction of this court under article 226 of the Constitution of India. He further placed reliance on the decision of the Andhra Pradesh High Court reported in [1993] 91 STC 36 (AP) (New Dwaraka Lunch Home v. State of Andhra Pradesh) that in the context of the materials seized, the estimation was sustainable based on the one day sales. Heard counsel for both sides. A perusal of the order of assessment shows that the assessment was based purely on the sale results on the date of inspection. Except the allegations that the petitioner has not preserved and produced the carbon copies of the pay-in-slips for the period April 1, 1993 to March 3, 1994, no allegations were made either as to the maintenance of the accounts or on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered to confirm the estimation made therein. This court held that "mere one day sales could not be attributed to estimate the whole year without considering the festival season, rainy season and other calamities". This court also pointed out that the Tribunal deleted the addition made based on one day sales; that the sales may differ from auspicious day and inauspicious day. While there cannot be any difference of opinion that sales may not be uniform throughout the year, yet, estimation of turnover depends on variety of factors. If the results of one day sales is supported by other materials like non-maintenance of stock account or regular maintenance account or defective incomplete accounts, other incriminating materials available to sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation on the basis of the one day sales. We do not find any material in the order of the Tribunal to support its view while confirming the view of the order of the assessing authority. The question arises what could be correct turnover for the purpose of assessment. The order of the authorities below shows that on the date of inspection, the total turnover was Rs. 6,083.70. The assessment order does not speak on any other materials and the defects about accounts which are to be maintained statutorily to support his view on the estimation for the whole year that the sales figures on the particular date of inspection hence, could not be compared with reference to sales on the other days for want of paying slips for the period falling under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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