9911796707
TMI Blog1995 (1) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... e not maintained. The place of business was inspected and the place of residence of one Kasinathan Chettiar was also inspected. No defects were found in the residence. The stock verification held at the shop revealed difference of 292.25 kg. in brassware and the suppression was estimated at Rs. 32,120 at 4 per cent by adding five times the actual suppression. 2.. Karpagam Metal Rolling Mills at Thiruppur was also inspected. In the inspection 131 slips were recovered with a file containing 45 letters, used forms XXP, 49 leaves, godown issue register, two exercise note books, etc. On verification of entire records, it was found that purchase of 4 tonnes of brass scraps were not accounted for. There were also excess stock in brass billets, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. Considering the facts arising in this case the Tribunal determined the addition at Rs. 1,25,000 for the Tiruppur branch as against Rs. 2,09,656 sustained by the Appellate Assistant Commissioner. The Tribunal took the view that there is also no need to make out the case for further probable addition of 50 per cent. The Tribunal also held that where there is suppression with regard to the purchase and the suppressed sale, there is no need to make separate addition under section 7-A of the Act. The Tribunal was also of the view that there is no case for levying penalty, since clear suppression was not established by the department. It is against this order, the department is in revision. 5.. The learned Additional Government Pleader (Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to purchase suppression and sales suppression was reduced by the Tribunal. Though it was not stated in so many words as to because of the reduction in the case of purchase suppression and sales suppression, a total reduction was given in the order of the Tribunal. Since the addition was made with regard to the suppression of sales as well as suppression of purchase on the estimated basis, addition with regard to estimated sales suppression would be unwarranted. Even the Appellate Assistant Commissioner redetermined the addition with regard to the suppression as well as the quantum of penalty. This would go to show that the Tribunal was not in error while reducing the quantum of purchase suppression and sales suppression in its order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as going on and so the total weight should not be compared with individual items. According to the assessee, if the total weight of all commodities were compared, the actual stock would be 15,730.300 kg. while the book stock was 15,435 kg. Therefore, according to the assessee, there is no much difference. However, this was not accepted by the department. The department has accepted that the manufacturing activities were going on and the outturn used to be written only in the course of the day. No doubt there is difference between the stock maintained in the books and the stocks found out during inspection. Therefore, the department decided that there is stock variation. The value of the excessive stock was worked out at Rs. 57,243. The depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the books and the actual stocks in the hands of the assessee. According to the assessee, the manufacturing process was going on, and if the total weight in the books was compared with the actual stocks found out in the hands the difference between these two figures is very negligible. If there is additions with regard to the purchase suppression and sales suppression which were made on the basis of estimate, it is open to the fact finding appellate authorities on the basis of the facts available on record to estimate the correct addition. The Tribunal being the ultimate facts finding authority considered that a consolidated addition of Rs. 1,25,000 would meet the purchase suppression as well as the sales suppression. Since this conclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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