1975 (5) TMI 78

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..... 5.45. The accounts were rejected by the Sales Tax Officer and assessment was completed on an estimated total taxable turnover of Rs. 4,98,901.07. The petitioner did not question seriously the rejection of the accounts and did not plead before the officer for acceptance of his accounts. The only question that was agitated before the authorities and repeated before us is whether the estimate made by the assessing authorities is reasonable. 3.. From the materials available, it is seen that on inspection by the Intelligence Officer, Ernakulam, of the business premises of the petitioner on 3rd June, 1968, he recovered certain slips of paper and a secret diary which disclosed suppression to the tune of Rs. 24,644.40 in the course of two months. .....

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..... s now well-settled that if the taxing authorities are satisfied of a pattern of suppression from the materials available, they will be justified in making addition, for the whole of the year, on the basis of the suppression detected. In this case, it cannot be seriously disputed that there was suppression for a period of two months. According to the petitioner, in timber business, bills for sales are issued long after the sales and purchase bills are also received long after the purchases and so the actual stock may not exactly tally with the accounts. Going by this explanation, it is clear that the books will not reflect, on each day, the actual turnover of business done by the assessee, which means that the actual turnover on each day wil .....

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..... t held that in that case a pattern has been established and that there has been continuous suppression for a period of five days. On the above materials it was held that the taxing authorities were justified in drawing an inference that there was suppression and that the conclusion arrived at, under the circumstances was, an honest conclusion. 6.. The ratio of that case is applicable to the case on hand. In this case, in addition to the fact that the Intelligence Officer detected on inspection suppression of a turnover of Rs. 24,644.40 for a period of two months from 1st April, 1968, to 3rd June, 1968, there is the explanation of the assessee himself about the practice that is followed by him, which betrays a pattern of suppression in the .....

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