TMI Blog1969 (11) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... he Indian Partnership Act, 1932. Besides running an oil mill it is also engaged in the hulling of paddy for persons who bring it for conversion into rice. The accounts of the petitioner for the year 1964-65 were rejected by the Sales Tax Officer and the turnover was estimated to the best of judgment by making an addition of 10% to the disclosed turnover. The appeal preferred by the petitioner before the Appellate Assistant Commissioner was dismissed. In further appeal before the Sales Tax Appellate Tribunal, the action of the assessing authority in rejecting the accounts was upheld, but the Appellate Tribunal felt that the addition of 10% to the turnover as such could not be justified. It directed the assessment to be modified on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability of the petitioner's accounts. The Tribunal, probably because of this circumstance, merely mentions in the order this circumstance without specifically indicating whether it disbelieved the explanation offered by the petitioner. We feel that the explanation should have been accepted. Or,at any rate, it appears to be too trivial to be made the basis for the rejection of the accounts. The Tribunal's order indicates that the real ground on which it justified the rejection of accounts is the variation in the consumption of electricity. Therefore, the question that arises for consideration is whether the variation in the consumption of electricity can by itself be taken as sufficient for discrediting the accounts. The learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral terms the exact circumstances in which the accounts should be considered as unreliable or incorrect. The accounts could be rejected as unreliable if important transactions are omitted therefrom or if proper particulars and vouchers are not forthcoming or if they do not include entries relating to one particular class of business, In this connection, it has to be pointed out that the rejection of accounts and assessment to the best of judgment are two distinct and separate processes and should not be confused as one, although there will be no overlapping in the materials used for applying both processes. The initial step of rejecting the accounts will be justified when the account books are found for valid reasons unreliable, incorrect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities below for the rejection of the accounts is that there was wide disparity in the consumption of electricity. In our opinion, this factor by itself without another supporting circumstance does not justify the rejection of the accounts. Such variation in the consumption of electricity can be due the various factors outside the control of the assessee. It is unsafe to categorically say that because there is variation in the consumption of electricity the accounts are incorrect or unreliable. It sometimes happens that current supply falls far below the usual voltage and on such occasions the output will necessarily be much lower than the normal rate. The efficiency of the crushing machine as also the moisture content in the copra would als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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