TMI Blog2015 (8) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... her price was no ground to say that all dealers should pay same price Government organization like TFDPC will normally pay higher price since it was non-profit organization Law was well-settled that books of account of assesse cannot be rejected merely on whims and fancy of assessing officer If assessing officer does not want to accept books of account, he must give some cogent and valid reasons for not accepting No evidence was reflected in order of assessing officer or appellate authority Assessment orders set aside and assessing authority directed to reassess income Decided in favour of Assesse. - W. P. (C) Nos. 442, W. P. (C) Nos. 443 of 2006 - - - Dated:- 30-6-2014 - DEEPAK GUPTA AND S. TALAPATRA, JJ. S. M. Chakrab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 12 per kilo gram for the years 2002-03 and 2003-04 and ₹ 30 per kilogram for the year 2004-05. The assessing officer did not accept the rates for the years 2002-03 and 2003-04 but accepted the rates given for the year 2003-04. For the year 2002-03, the assessing officer assessed the rate of rubber sheets at ₹ 36 per kilogram and rubber scrap at ₹ 17 per kilogram. For the assessment year 2003-04, the rate of rubber sheet was assessed at ₹ 50 per kilo gram and the rate of rubber scrap at ₹ 20 per kilogram. The assessee filed an appeal before the Assistant Commissioner of Taxes who not only rejected the appeal of the assessee but without giving any notice to the assessee directed that the highest rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate authority increased the rate of rubber to an even higher rate than assessed by the assessing authority. We are unable to understand how he could have done so when there was no appeal or revision by the Department. No suo motu action was taken by him. The action of the appellate authority in raising the rate of rubber to an even higher level than the rate determined by the assessing officer is totally illegal and cannot be sustained under any circumstances. The next issue is as to in what manner are the books of account to be rejected or accepted. The mere ipse dixit of the assessing officer cannot be accepted. No doubt, the assessing officer has the power not to accept the books of account filed by the assessee. However, if he want ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alers should pay the same price. As far as the appellate and revisional authorities are concerned, they have relied on the rates of the TFDPC but those rates are not reflected in the orders. What were the rates at which the TFDPC purchased rubber in plantations from the same area should have been clearly placed on record. This has not been done. Furthermore, Government organization like the TFDPC will normally pay a higher price since it is a non-profit organization. The TFDPC has been created for the welfare of the grower and may therefore pay a higher price. A dealer works for profit and a private dealer bargains much more than the Government organization. Various taxation statutes empower the assessing authorities to make assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch evidence has been reflected in the order of the assessing officer or the appellate authority or even the revisional authority. In fact, this issue is no longer res integra. A Division Bench of the Gauhati High Court in Sankar Trading v. State of Tripura [1991] 82 STC 22 (Gauhati); [1990] 2 GLR 169 dealt with provisions of section 9(4) of the Tripura Sales Tax Act. In that case, the petitioner had shown in his record that tea was sold at the rates of ₹ 15, 16 and 17 per kilogram. The Super intendent of Taxes felt that the sale prices reflected in the books were lower than the prevailing market rates. He, therefore, enhanced the price of tea. The Division Bench held as follows (pages 23 and 24 in 82 STC): 4. We have considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in possession of full particulars of the case he is expected to meet. The assessee must be given full opportunity to meet objections raised by the assessing officer. If an assessment is based on materials which were not disclosed to the assessee, the order of assessment would be vitiated . The aforesaid decision is applicable to the facts of the present case also. The assessing officer did not inform the petitioner-assessee about the materials which he proposed to rely upon nor did he furnish the necessary information to the assessee with regard to the market rate of rubber prevailing at the particular time to enable the assessee to submit his explanation in that regard. That having not been done, the impugned orders of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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