TMI Blog2008 (5) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... no inspection, stock variation, penalty, compounding or any other discrepancy in the accounts and actually the gross profit and the volume of trade showed a better trend than the previous year? Held that:- The questions of law framed by the assessee is answered in favour of the assessee and against the Revenue. Accordingly, we allow the revision petition. We direct the assessing authority to accept the conceded gross profit declared by the assessee in its annual returns filed for the assessment year 2002-03 and pass fresh assessment order in accordance with law, as expeditiously as possible, at any rate, within four months from today and issue a fresh demand notice. - S.T. Rev. No. 337 of 2005 - - - Dated:- 28-5-2008 - DATTU H.L. C.J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the purchase value of goods sold. 2.. Excess tax collection of Rs.199 during the month of June 2002 and March 2003 has to be paid over to the Government. After receipt of the pre-assessment notice, the assessee had filed its objections, inter alia, explaining the reasons for conceding only 6.5 per cent gross profit for the assessment year in question and further it had requested the assessing authority to complete regular assessment instead of going for the best judgment assessment as proposed in the pre-assessment notice issued. The reply filed by the assessee to the pre-assessment notice is as under: The above proposal was communicated to the assessee giving them an opportunity of hearing. In response to the above, they hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclared by the assessee. The reasoning and conclusion reached by the assessing authority is as under: I have gone through the reply in detail. The dealer has not adduced any further evidence to prove his contention. It is a fact that conceded gross profit was very low in this line of business considering the gross profit earned by other such dealers. I do not find any valid reason to deviate from the proposal. Hence, the objections put forth by the assessee is overruled as devoid of merits and the assessment for the year 2002-03 is completed as already proposed. One thing is clear that even in the case of best judgment assessment, the assessing authority is expected to assign valid reasons, firstly, for rejecting the books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first appellate authority and the Tribunal, respectively. Aggrieved by the orders passed by the Tribunal, the assessee is before us in this tax revision case. The assessee has framed the following questions of law for our consideration and decision: (i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in rejecting the accounts and estimating the turnover only on the basis of alleged low gross profit? (ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in observing that the burden of proof is on the assessee when actually the burden is on the Revenue to prove the higher rate of profit based on which assessment has been completed. Is i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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