1983 (3) TMI 250

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ded a sum of Rs. 5,000 to the taxable turnover towards probable suppression of purchases in view of certain defects found in the accounts. Aggrieved by the addition of these two amounts in the taxable turnover, the assessee went before the Appellate Assistant Commissioner contending that there are no substantial defects in the accounts, and therefore, the addition of Rs. 5,000 towards possible suppression cannot be legally sustained and that the sawing charges being levied towards the post-sale services done by the assessee for cutting the logs purchased by the customers into pieces of particular specification as desired by the purchasers, can never be taken as part of the turnover of the log purchased. The Appellate Assistant Commissio .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... xplained by the assessee with reference to the entries in the account books. We are not inclined to sustain the reasoning of the Board of Revenue that merely because the addition is nominal it cannot be sustained without going into the merits (sic). In this case, the Appellate Assistant Commissioner has gone into the merits and found that the discrepancy said to have been found by the assessing authority has been duly explained by the assessee, and therefore, no addition is called for under the head "probable omission and suppressions". In this view, we cannot uphold the order of the Board of Revenue restoring the addition merely on the ground that the addition is nominal. Coming to the sawing charges amounting to Rs. 21,532.39, the App .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... me, the sales tax and lot coolie and surcharge are collected on the sale. Thereafter as the customer cannot easily transport the log purchased by him he requires the assessee to cut the log into specific sizes required by the customer and the log is thereafter cut to sizes and the sawing charges are collected from the customer. Thus the work of sawing the log purchased already is an independent bargain and that relates to the services rendered by the assessee after the sale of the log to the purchaser. Therefore, it has to be taken to be a post-sale service which has been the subject-matter of a separate bargain and it has been paid for separately apart from the price of the log purchased by the customer. The view taken by the Board of Re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X