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TMI Blog2021 (11) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... e order dated 8.3.2013, the present revision has been admitted on question nos. 'B and C' only, which are quoted below:- "B. Whether in the facts and circumstances of the case, in view of the law laid down by this Hon'ble Court in various cases that where the turnover shown in the account books is higher than too turnover disclosed in the return the account books of the applicant can be rejected? C. Whether in the facts and circumstances of the case, the Commercial Tax Tribunal, Ghaziabad as well as authorities below were justified in disallowing the claim of damage which is less than 1%, inasmuch as the same has been allowed by the assessing authority himself in the assessment year 2008-09?" 4. Brief facts of the case are that the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business is as such it cannot be said that there would not be any damage in transit or leakage of oil. It is common in the nature of trade the applicant. He further submits that the transit loss has also been accepted by the assessing authority in the subsequent years. He further submits that so far as the allegations of under valuation of sale of product are concerned, the authorities were not correct as it was admitted fact that the disputed assessment year was the first year of the business of the revisionist and to establish itself in the market, the competitive rates were given. Otherwise also the authorities have not brought any material on record to show otherwise. He further submits that so far as the shortage of maze was concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and if there was transit loss or damages due to which any difference as transit loss / loading -unloading loss. The dealer has also filed a certificate of transport details at page 39 of the revision. During the year 14869833 litres of edible oil were being imported in the State of UP, out of which the transit loss has been shown to 91021 litres which comes to about 1% only. Further the record reveals that the authorities, without any basis, have partly accepted the contention of 10,000/- litres of transit loss, whereas in the subsequent years the assessing authority on the same identical set of facts, has accepted the disclosed transit loss of the revisionist i.e. for assessment year 2007-08 and 2008-09, copies of which have been filed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng amounts to its customers, depending upon the market situation and other relevant factors, the Revenue cannot legally object to it nor it can take any exception to the manner in which the assessee has conducted its business. The account books can be rejected only on the grounds which are well established of which some reference has been made earliers. The claim of the assessee that it had sold the goods below the expected market price, may be a warning to put the revenue on alert which may call for a thorough and detailed scrutiny of the account books. However, if no adverse materials is found despite the scrutiny, the account books cannot be rejected on suspicion and surmises alone. Where the genuineness and regularity of the accounts ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower authorities that the goods were sold at lesser price is bad. 14. Further the record reveals that only on the basis of surmises and conjucture, the account books of the assessee have been rejected and turnover has been enhanced which cannot be justified. This Court in the case of Commissioner of Sales Tax Vs. S/S Ghurahu Ram Paras Nath, Gorakhpur, 1989 UPTC 1412 has held that in the absence of any definite adverse material accounts kept in regular course of business cannot be disbelieved and must be given credence and due weight. In the case in hand, no adverse material whatsoever was brought on record to disbelieve the account books maintained by the revisionist and therefore rejection of account books and enhancement of turnover is u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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