TMI Blog2019 (7) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... r relied upon by the Assessing Authority nor there is any intimation received from the seller or transporter or railways in support of the conclusion reached with respect to suppression of the freight charges - answered in the negative i.e. in favour of the revenue and against the assessee. HELD THAT:- It is vital in the facts of the present case that the entire quantities of coal had been produced by the assessee from a single purchaser from M/S Bharat Coking Coal Ltd., Dhanbad. Some freight receipts had also been produced by the assessee disclosing the freight charges paid to that seller that have not been doubted or disbelieved. The Assessing Authority could not have recorded a subjective satisfaction that there was suppression of fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed the appeal filed by the assessee against the order of the first appellate authority. During the assessment year in question, the assessee was engaged in manufacture and sale of soft coke and undersize rejected coal. In its annual return, it had disclosed taxable return of ₹ 1,84,17,206/-. 4. In the assessment proceeding, the Assessing Authority doubted the correctness of the books of account of the assessee with respect to it's manufacturing account as also with respect to purchase of coal, specifically with respect to the freight charges disclosed by the assessee. By the assessment order dated 21.02.2004, the Assessing Authority rejected the books of account of the assessee and thereafter ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... location, there was no reason to reject the books of account on a presumption that higher freight may have been paid by the assessee on other transactions. As to the other defects noted in the books of account, it has been submitted that the same were trivial in nature and not such as may have resulted in rejection of the books of account. 7. While the finding of the Assessing Authority was thus defective and erroneous, the Tribunal have compounded the mistake committed by the Assessing Authority by assuming against the admitted fact that the assessee had not produced any freight receipt. 8. The first appellate authority had granted partial relief by accepting the claim of the assessee with respect to manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the estimation of the turnover is concerned, though while making a best judgment assessment, a guess work has to be made by the Assessing Authority and the assessee cannot question the exactness of the guess made insofar as such exercise may be found to be based on credible and reliable material, however, insofar as the addition has been made on account of freight charges, at present it does appear that the Assessing Authority did not have any material to make that enhancement. Perusal of the assessment order reveals that the reason for making the enhancement to the freight charges is only one, being non-production of part freight receipts. Even if that reason can be accepted as a reason to make the estimation, the assessment order does not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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