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TMI Blog1982 (9) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... e purchasers or whether he acted as a buying agent for local as well as outside State buyers. The assessing authority held that when submitting his tender for the purchase of gunnies from Pamani Fertilizers Limited, he tendered in his individual capacity and it is only after the tender was accepted he has sold the goods to the local as well as outside State purchasers and therefore the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellate Assistant Commissioner. The view taken by the Tribunal has been challenged in this tax case filed by the State. On the materials on record, the conclusion of the Tribunal that there was no sale of gunny bags by the assessee appears to be right. The assessee runs a gunny mundy at Mannargudi. For the assessment year 1979-80, the assessing authority passed a best judgment assessment fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover of Rs. 28,552 and that in fact the gunnies were purchased for the said sum from Pamani Fertilizers Limited as a purchasing agent on behalf of others and therefore he is not liable to pay tax on the said turnover. In support of his submission that he has acted only as a purchasing agent with reference to the turnover of gunny bags to the extent of Rs. 28,552 he produced the account books s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee also produced the bills issued by Pamani Fertilizers in favour of the actual persons for whom the assessee has acted as purchasing agent and the bills indicate that Pamani Fertilizers drew the bills directly against the ultimate purchasers and collected the charges for the gunnies directly from them. The assessee also produced the bills issued by the carriers showing that Pamani Fertilizers dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case in holding that the assessee acted only as purchasing agent so far as the transaction of purchase of gunny bags from Pamani Fertilizers is concerned. Having regard to the fact that the addition of Rs. 28,552 made by the assessing authority on the basis of the best of judgment assessment, has been deleted by the Tribunal, the penalty levied on the basis of the said addition has naturally to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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