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TMI Blog1978 (3) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... ks of the assessee and sales of oil and cake resulting from the crushing of the said copra was also taken into account in assessing the petitioner. This was based upon recovery of three slips of paper from the premises of the Prabhat Oil Mills when there was inspection by the Sales Tax Officer on 29th May, 1969. The Prabhat Oil Mills admittedly belonged to the petitioner. According to the Sales Tax Officer, at the time the premises of the oil mills were inspected by him the person in-charge of the business was one Bharathan, said to be an employee of the petitioner. The said Bharathan is said to have given a statement to the said Sales Tax Officer, but when it was taken down by the officer and Bharathan was asked to sign he is said to have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the name Bharathan. In this context what is seen stated is: "The information given by A.P. Bharathan cannot be taken against me. I have no employee by name A.P. Bharathan. The information given by him may not be taken against me." The petitioner applied for certified copies of the slips. The certified copies were issued to him, and further the Sales Tax Officer informed him that he may file further objection, if any, within five days after perusing these certified copies. No such objection was filed within five days nor was any time asked for on the expiry of' the period of five days. After the said period, the assessment order was passed by the Sales Tax Officer on 19th April, 1972. Though there is reference to the objections raised by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slips of paper so recovered would lead to the assumption that the books of account of the assessee were incorrect or incomplete would not be warranted in the circumstances of the case and (ii) that even assuming that the slips indicate some suppression for five days, in the absence of any material to show that there is a pattern of suppression for the whole of the year, the addition made on the assumption of such pattern of suppression for the whole year may not be sustainable in law. 3.. We find from the order of the Sales Tax Appellate Tribunal that the slips recovered from the premises of the appellant have been related to the accounts of the assessee by reference to the statement said to have been made by Sri Bharathan, but not signed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indicating any business transactions they may be of no use even if the assessee fails to explain these. But if the slips can be taken as reflecting business transactions and are taken from the business premises of the assessee it is up to him to explain them. It will be difficult, if not impossible, for the inspecting authorities to establish that the papers recovered relate to the business of the assessee himself. Normally account books, papers and records relating to business transactions found in the business premises of the assessee must be taken as relating to his business. It is possible that some other person might have entrusted or left such accounts or papers in the premises of the assessee. But that would be a fact within the pec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dealer to rebut the presumption arising out of the presence of these records at the business place that they also relate to the business by showing their contents to the inspecting officer and satisfying him that those records are unconnected with the business and that they relate only to his private affairs." Of course, that was a case where the learned Judge referred to the possible explanation that the accounts related to the private affairs of the assessee. 5.. A Division Bench in the decision in Sankunny Nair v. State of Kerala[1961] 12 S.T.C. 758 at 763. observed thus in regard to the very same question: "The normal presumption that could be drawn in respect of the records and books that are found in the business place of a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded on. Therefore, these slips assume relevance only in relation to the statement of Sri Bharathan and, if the statement cannot be relied on, the order of the Tribunal relying upon such statement cannot be sustained. 7.. The assessee categorically stated that Sri Bharathan is not his employee. Bharathan had not signed any statement before the Sales Tax Officer. The statement taken down by the officer to which the deponent had not subscribed his signature cannot be taken as a statement by the deponent himself. It is as good as a statement by the officer that somebody told him something which he recorded. The veracity of the statement as well as the competency of the person who has given the statement to depose on behalf of the assessee wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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