9911796707
TMI Blog1996 (3) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Rules? 2.. Has not the Tribunal erred in confirming the assessment basing solely on a diary entry of a sales representative sufficient justification in law to treat as taxable turnover at the hands of a registered dealer? 3.. Is not the Tribunal bound to look into the quantum of the turnover with the financial capacity of the dealer and has not the statutory authority decided the legal issue with evidence on record? 4.. The Tribunal being the final fact finding authority is it sufficient justification for it to endorse the assessment without a discussion on the materials available on record. 5.. Do not the non-imposition of any penalty or prosecution consequent to the inspection and the alleged unearthing of suppression cut at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 839.13 and correspondingly taxable turnover at Rs. 17,25,241.98 as per form No. 8. The assessing officer rejected the accounts reporting the above figures of the turnover. 4.. The reason for reaching this factual conclusion was that during surprise inspections referred to above the seized records, on verification reveal that the purchases are effected from outside the State in the name of fictitious persons. This was revealed from a code worded pocket book. The assessing officer observed that this pocket book related to certain purchases of steel mainly from Trichy Steel Rolling Mills Limited, Trichy. In addition it is observed that the drafts received from the business place support this situation by way of confirmation. The assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egularities are located in the accounts of the firm for the two years in question are placed as contents of the pre-assessment notice. It is observed that irregularities are very serious and had to be detected by the Intelligence Officer showing clear avoidance of tax liability. Even then for the purposes of examination of the situation in a detailed manner the first appellate authority passed an order of remand. 7.. Even thereafter the authority considered the situation by the order dated November 19, 1990 (annexure E). The entire situation is again carefully considered by the authority and in regard thereto especially in paragraph 5 thereof it is observed that when the entries in the code words in the pocket books were decoded particula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Mills Limited it is revealed that they had sold steel in the above names for the periods 1976-77 to 1978-79 and these consignments were purchased by the assessee in fictitious names from Trichy Steel Rolling Mills and sold them to dealers in Kerala. 9.. Thus on reconsideration in view of the above situation taxable turnover for 1977-78 is fixed at Rs. 1,03,44,263.44 (sic) have a round figure of 60 at the end. 10.. Even thereafter this question has received confirmation from the order dated October 30, 1991 of the first appellate authority thereafter [Deputy Appellate Assistant Commissioner (Appeals) of Agricultural Income-tax and Sales Tax, Ernakulam], as well as by the Sales Tax Appellate Tribunal, Additional Bench, Palakkad (annexur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from annexure G to show the strength of the contents of the above letter. It is urged that with regard to the sales effected through the branches tax is suffered. In our judgment all the authorities have considered the situation and have recorded conclusions in regard to the resort of code language and recorded factual findings relating to the direct sales by the Trichy Steel Rolling Mills Limited in the State of Kerala and not in any way through their branch offices. The question however, couched cannot have the character of being a question of law. The other questions are pure questions of fact and in the light of the satisfactory treatment given by the authorities below in regard thereto it is not possible to exercise powers under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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