2011 (7) TMI 1134 - HC - VAT and Sales Tax

Bricks - Demand of tax on the basis of assumption - Appellant relied upon the order of the first appellate authority and stated that 7000 bricks were donated and 70,000 bricks were used for the construction of a room. He also submits that in second session, the burning period was for only 12 days, which was wrongly estimated on higher side - Tribunal rejected the claim of the assessee pertaining to the use of 70,000 bricks despite the certificate was issued by the village Pradhan. Held that - at the time of survey, no proper books of accounts were found and the same were neither produced at any stage before the authorities below nor before the Tribunal. So, the A.O. was right to make the addition on estimate basis specially when no record was kept regarding the sanction of bricks and donation the same - revision dismissed - decided against assessee.

Summary

Issues:
Assessment under U.P. Trade Tax Act for the year 1995-96 based on estimates without proper records.

Analysis:
The case involved a bricklin firm where a survey revealed the absence of proper books of accounts and stock registers. The assessing officer estimated the production based on the burning period and number of bricks manufactured due to lack of records. The first appellate authority provided partial relief on an estimate basis, which was partially restored by the Trade Tax Tribunal. The revisionist argued that the burning period and brick usage were wrongly estimated on the higher side, citing past surveys and a certificate from the village Pradhan. However, the Tribunal upheld its decision based on the absence of concrete evidence and the need for estimation due to lack of records.

The revisionist contended that the Tribunal erred in rejecting their claims and substituting its findings based on presumptions without proper consideration of facts. The learned counsel highlighted discrepancies in the estimation process and requested the impugned order to be set aside. Conversely, the Standing Counsel supported the Tribunal's decision, emphasizing the lack of evidence provided by the assessee to support their claims.

Upon review, the Court noted the absence of proper records and the reliance on estimation due to the lack of documentation regarding brick production and usage. The Court referred to established legal principles and judgments emphasizing that estimation is a factual matter. Citing precedents such as *New Plaza Restaurant v. ITO* and *Sanjay Oil Cake v. C.I.T.*, the Court concluded that no substantial question of law arose from the Tribunal's order. Consequently, the Court upheld the Tribunal's decision, dismissing the revision filed by the assessee for lack of merit.