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TMI Blog1992 (1) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer is justified to resort to best judgment assessment and to make suitable enhancement of turnover to cover possible suppression in the absence to stock account? 2.. Background in which reference has been made is as follows: M/s. Gaurab Enterprisers (hereinafter referred to as "the assessee"), a registered dealer under the Act filed its returns for the assessment year 1984-85. Before the assessing officer, it produced books of accounts relating to purchases and sales. But annual account of the stock of goods purchased and sold by it, relating to the opening balance and closing balance at the beginning and closing of the accounting year was not produced. The assessing officer held that in the absence of such account, the cross ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has maintained purchase and sales registers. In the absence of stock accounts, stocks are verifiable. Admittedly, no suppression either in purchase or sale was detected and therefore, the Assistant Commissioner was justified in deleting enhancement, relying on the decision reported in [1975] 36 STC 220 (Commissioner, Sales Tax v. Khera Shoe Co.). The Revenue moved the Tribunal for reference of two questions under section 24(1) of the Act. The prayer was accepted and reference has been made as indicated above. In spite of notice, the assessee has not entered appearance in this Court. 3.. Mr. S.K. Patnaik, learned counsel for Revenue, has submitted that under section 15(2) of the Act, a mandatory prescription has been made for maintenance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e account mentioned in sub-section (1), maintain an annual account of the stock of goods purchased and sold by him showing the opening balance and the closing balance at the beginning and close of each accounting year which he follows." 5.. The modalities of assessment are prescribed in section 12. Sub-section (1) of section 12 permits assessment of tax due on the basis of returns filed where assessing officer is satisfied, that returns furnished in respect of any period are correct and complete without requiring presence of the dealer or production of any evidence. Where however such satisfaction is not arrived at, the assessing officer may require production of such evidence on which dealer may rely in support of returns. On production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating to his business. Additionally, it has been prescribed that registered dealer other than one who is required to compound the tax, shall maintain annual account of stock of goods purchased and sold by him, showing opening and closing balance at the beginning and close of each accounting year. The Act does not insist that any particular system of accounting should be followed. All that is necessary is that true account of value of goods bought and sold and books of accounts relating to business shall be kept at the place or places of business mentioned in the certificate of registration. The additional requirement is maintenance of annual account of stock. The purpose seems to be that while verifying correctness of books of accounts and/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly answer the second question referred to as follows: (i) Non-maintenance of annual account of stock in terms of section 15(2) of the Act by itself cannot be a ground to conclude that books of accounts and/or turnovers returned do not reflect the true and correct position relating to value of goods bought and sold. (ii) On the facts of the case at hand, in view of the findings of fact recorded by the Assistant Commissioner and the Tribunal, no question of law arises out of the order of the Tribunal. The question whether books of accounts maintained are true and correct is essentially one of facts. The reference is accordingly disposed of. No costs. S.K. MOHANTY, J.-I agree. - - TaxTMI - TMITax - CST, VAT & Sales Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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