TMI Blog2018 (12) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... in purchase/manufacture and sale of goods outside its regular books of accounts. The books of accounts were not produced on the date of survey and the finding with respect to the shortage and excess in the stock appears to be based entirely on facts, the further finding recorded by the authorities that the assessee had engaged in concealment of his turnover does not appear to suffer from any perversity - the rejection of books of accounts was rightly upheld. Estimation of turnover - Held that:- Though, the goods are claimed to be excisable goods and it is further claimed that there is no other material to establish concealment of turnover, the authorities appear to have rightly considered the electricity consumption disclosed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee submits that, in the first place, the books of accounts of the assessee were wrongly rejected solely on the ground that the account books and the stock register could not be produced during the survey conducted on 21.04.2012. Those books of accounts were produced before the assessing officer on the next day. The same were found to be duly maintained. Accordingly, it has been submitted that the ground for rejection of the account books is hyper-technical. Further, it has been submitted during the survey, though the stock reconciliation was made by the survey authorities, however, no weighments were made. The stock was recorded during the survey proceedings purely by way of estimation, therefore, the discrepancy had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Counsel, on the other hand, submits that present is not a case of rejection of books of accounts solely on the basis of nonproduction of the same during survey. In the present case, though the books of accounts were produced on the next day, the assessing officer noted that in order to reconcile the unaccounted stocks, the assessee had recorded excessive purchase and sale of goods in the last few days preceding the survey. These were found to be far inexcess figures of average sale and purchase of the similar items by the assessee during the entire year. Therefore, it has been submitted that the rejection of books of accounts had rightly arisen keeping in mind the shortage and excess in stock found during the survey. Second, it has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , however, it cannot be lost sight that in the present case, the assessee was found to have been indulged in purchase/manufacture and sale of goods outside its regular books of accounts. Keeping in mind the fact that the books of accounts were not produced on the date of survey and the finding with respect to the shortage and excess in the stock appears to be based entirely on facts, the further finding recorded by the authorities that the assessee had engaged in concealment of his turnover does not appear to suffer from any perversity. Therefore, the rejection of books of accounts was rightly upheld. 7. Coming to the question of estimation of turnover, as noted above, the discrepancy in the stock noted on a single day may not have it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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