1973 (5) TMI 89

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..... overnment of Tamil Nadu. The lease taken was for one year ending with 31st of March, and the lease amounts paid are termed as kist. According to the terms and conditions of the lease, the lessee has to deliver a particular quantity of bamboos collected from the coupes to M/s. Seshasayee Paper Boards Ltd., Pallipalayam, and the balance of the bamboos alone can be disposed of by the contractor. So far as the bamboos delivered to M/s. Seshasayee Paper Boards Ltd. is concerned, no payment is to be made and only the cutting and freight charges are payable to the assessee by the mills. It appears that during the assessment year, instead of delivering the bamboos as soon as they were cut and collected from the forest, the assessee took the bam .....

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..... nd that there is no finding by any of the authorities below that the account books are not acceptable. According to the learned counsel, unless the account books are rejected as not reliable, the turnover disclosed in the accounts should normally be accepted, and that, in this case, the only reason for the authorities below to ignore the book turnover and make an addition on the basis of best judgment was that in comparable cases, the turnover has been found to be more than four or five times the kist paid in relation to each coupe contract and that, therefore, five times the kist paid in relation to each coupe contract should be adopted as the turnover of sales of forest produce. It is true that in respect of two contracts out of the four, .....

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..... the total quantity of forest produce collected by the assessee as against the kist payment. Then alone a proper comparison may be made between the produce collected and the kist payments. We, therefore, think that the Tribunal has to consider the matter afresh after taking into account the closing stock of the forest produce at the end of the assessment year for the purpose of correlating the kist payments with the quantity of forest produce collected by the assessee. As regards the second item of Rs. 37,314.05 said to be the sales effected by the assessee to M/s. Seshasayee Paper Boards Ltd., the learned counsel for the assessee contends that there has been in fact no sale, but the delivery of the bamboos was in pursuance of the terms .....

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