TMI Blog2009 (11) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... legal? Held that:- In a best judgment assessment, guesswork is inevitable but it should be a reasonable one. The AAC was justified in finding that the estimated assessment from serial Nos. 1 to 96 was unreasonable. In our considered view, the Tribunal was not justified in interfering with the order of the AAC in respect of slip No. 1 insofar as the estimated assessment. The Tribunal did not keep in view the documents produced by the assessee. The Tribunal was not right in saying that the amount could not have been taken from business. The assessee is a dealer in buying and selling of utensils having daily collections. Therefore, it cannot be said that the amount so paid to M/s. Reliance Electricals was a colourable device to evade pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition towards probable omission and arrived at the estimated suppression of Rs. 5,14,956. During the course of pendency of the abovesaid proceedings, the assessing authority had issued a revised notice on November 8, 1993 pointing out that the petitioners had purchased goods from Kalaivani Metals of Madurai for Rs. 4,36,344.80 and was of the view that no such dealer was in existence and consequently proposed to disallow the claim of exemption. The petitioners had filed their objections. The assessing authority confirmed the proposals stated in the show-cause notice. On appeal, the Appellate Assistant Commissioner (AAC) had modified the order. As regards slip No. 1, the Appellate Assistant Commissioner had held that while the actual suppr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing authority for denovo consideration. Challenging the order of the STAT, the assessee has filed this revision. In this revision, the following substantial questions of law are raised for consideration: 1.. Whether, in the facts and circumstances of the case and in law, the Sales Tax Tribunal was justified in setting aside the order of the Appellate Assistant Commissioner without finding any illegality in the order of the Appellate Assistant Commissioner partly allowing the appeal? 2.. Whether, in the facts and circumstances of the case and in law, the Sales Tax Tribunal was justified in treating the loan transaction as a sale also on the ground that the petitioners are not financiers? 3.. Whether, in the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly a loan transaction, the assessing officer held that the demand draft related to business transactions and treated as purchase suppression. Before the AAC, number of documents were produced (i) Letter from M/s. Reliance Electricals dated January 24, 1993 for a loan of Rs. 1,00,000, (ii) bank challan dated January 29, 1993 for taking demand draft for Rs. 1,00,000 by the assessee noting the payee name as Reliance Electricals, (iii) copy of form No. 16B filed by M/s. Reliance Electricals before TDS circle, Coimbatore showing payment of interest to the assessee T.S. Metals, (iv) statement of accounts of M/s. Reliance Electricals for 1992-93 wherein loan amount of Rs. 1,00,000 received from the assessee was reflected. Upon analysis of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time and therefore, it cannot be said to be a bogus dealer. Before the STAT, in his written arguments the State Representative raised number of points contending that door No. 26D was a residential house and there was no business activity and M/s. Kalaivani Metals had no connection to that place. In the written arguments the State Representative had also raised various points to substantiate the contention of the Revenue that M/s. Kalaivani Metals is a bogus dealer. Having regard to the various points raised before the STAT to substantiate the plea that M/s. Kalaivani Traders is non-existent, the Tribunal remitted the matter back to the assessing authority. Having regard to the various contentions raised by the State Representative, we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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