9911796707
TMI Blog1991 (9) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent to produce their accounts. However, when a notice was issued by the assessing authority, after remand, the assessee neither produced his accounts nor cared to make a representation. The shop of the assessee had been inspected on October 17, 1972 by the Assistant Commercial Tax Officer. The Intelligence Wing Officer inspected both his shop and residence on May 29, 1972 and recovered certain account books and slips. There were also a stock of six imported watches and 31 watch straps. It was thus clear that the assessee was dealing in watches. From the account books and the records seized from the place it was found that there was sale of watches to the tune of Rs. 7,65,928 from April 1, 1972 to May 25, 1972. 2.. There was clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been made on best judgment basis. The levy of penalty is therefore called for. I therefore find on the facts and in the circumstances of the case, that the assessing officer is justified in levying penalty at the maximum rate. I sustain the penalty levied." 3.. On second appeal the Tribunal confirmed the best judgment assessment with the following findings: "We are therefore satisfied that such other receipts also should have related to the sale proceeds of the watches as stated earlier. Further, admittedly the appellant was dealing in plastic goods and ladies bags, the books of accounts, relating to the fancy goods and plastic goods, etc., were not produced before the department. In their absence the assessing officer came to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to a notice. It will not arise when the authorities have to search and seize the materials and decode the language for discovering the transactions. The Tribunal has also failed to take note of the fact that all the watch sales had not been shown in the so-called books of account. The finding in State of Tamil Nadu v. Indian Metal and Metallurgical Corporation [1978] 41 STC 165 (Mad.) was that the assessee was under the bona fide impression that the sales were not liable to tax at all and therefore did not file declaration forms under section 3(3). The Tribunal ought not to have relied on this judgment because it is clearly distinguishable. On facts of the case the conclusion is inescapable that the penal provisions are attracted. The T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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