1993 (1) TMI 281 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to rejection of account books and quantum of turnover determination for assessment year 1983-84 under U.P. Sales Tax Act, 1948.

Analysis:
The revision before the High Court stemmed from assessment proceedings for the year 1983-84 concerning the sale of transistors, records, cassettes, etc. The primary contentions raised by the assessee's counsel were the legality of rejecting the account books and the quantum of turnover brought to tax. The rejection of account books was based on a survey that revealed systematic suppression of turnover through unrecorded transactions amounting to Rs. 7,000, indicating the books' unreliability. The argument that the same loose papers were used in the previous year's rejection was dismissed as each assessment year is independent. The High Court upheld the rejection of account books for the current year due to turnover suppression and non-maintenance of books in the ordinary course of business. The contention against the rejection of account books was deemed meritless and rejected.

Regarding the quantum of assessment, the assessing officer estimated the net taxable turnover at Rs. 80,000, which was later reduced to Rs. 50,000 on appeal. However, the Sales Tax Appellate Tribunal reinstated the Rs. 80,000 turnover, leading to cross-appeals. The High Court found the estimate reasonable, considering the transactions from loose papers over 27 days showing a suppression of Rs. 7,000. The Tribunal's decision was supported by various circumstances justifying the rejection of account books and turnover enhancement. The High Court concluded that the assessment turnover was not excessive, arbitrary, or unjust, dismissing the contention against the turnover estimate.

In summary, the High Court dismissed the revision, stating it lacked merit and no costs were awarded. The order of the Sales Tax Tribunal was upheld, finding no legal infirmity warranting interference. The rejection of account books and the turnover determination for the assessment year 1983-84 under the U.P. Sales Tax Act, 1948, were upheld, and the petition was ultimately dismissed.