1976 (2) TMI 156

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..... nd in the circumstances of the case, there was any relevant material for rejecting the assessee's account books?" The assessee did not maintain any manufacturing account as required under rule 72(2) nor did he produce any stock register maintained for manufactured goods and for raw material. Admittedly, there was a difference in the turnover as per returns and as per books. The assessee's shop was surveyed twice-once on 30th October, 1963, and the second time on 17th December, 1964. In the first survey, the stocks were admitted to be of Rs. 20,000. The assessing authority found that, according to the disclosures made by the assessee, the stocks according to the books of account on 17th November, 1963, were worth Rs. 70,659.50. There was t .....

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..... concerned, there can be no doubt that it was not relevant for the year 1963-64. But the authorities below have not considered the survey for rejecting the account books. An inference has been drawn by the conduct of the assessee. There is no dispute that the Evidence Act does not apply to the proceedings under the Sales Tax Act, but the Tribunal constituted under the statute can very well rely on presumptions or can draw inferences from circumstances which a reasonable man is entitled to draw. Section 13 of the Sales Tax Act casts a duty on the assessee to produce the account books whenever demanded by a surveying officer. In performance of the statutory duties, if the surveying officer visits the shop of the assessee and he is denied the .....

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..... horities cited by the counsel for the assessee lay down that the account books cannot be rejected even when they are not maintained in such a manner that they cannot be verified. The courts below have further found that there is discrepancy in the return version and the book version. It has not been pointed out to us that this is incorrect. In our opinion, all these circumstances were sufficient for rejection of the assessee's account books. For the reasons stated above, we are of the opinion that the question referred to us should be answered in the affirmative against the assessee and in favour of the department. Our answer is that, in the facts and circumstances of the case, there was relevant material for rejecting the assessee's acco .....

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