1996 (9) TMI 582

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..... the context of the situation that accepting the entire factual matrix without adding or subtracting anything therefrom revealing the situation that from first step of rejection of accounts consequently leading to the situation to resort to estimation is wholly unjustifiable, the result would be the ultimate inevitable reflection in regard thereto. 3. Further debate relating to the consequence of the resort to estimation entirely depends on this jurisdictional situation. In other words, the jurisdiction to reject accounts and consequently to take resort to estimation is only dependent on the factual justification relating to the rejection of accounts. In the proceedings where there is haste to avoid prosecution, mitigated by the compoun .....

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..... rn Metal Rolling Mils (P) Ltd. V. State of Kerala [1997] 104 STC 566 (Ker). 6. The assessment year is 1990-91. The assessee returned total turnover of Rs. 15,77,892.85 and taxable turnover of Rs. 15,126.25. The particulars in regard thereto are as follows: Non-taxable Taxable Rs. Rs. Opening stock 1,50,984.25 13,688.75 Purchases 14,38,278.92 20,856.88 Sales 15,62,766.60 15,126.25 Closing stock 1,24,212.75 16,753.00. For rejection of the accounts, the sole reliance is on the surprise inspection report dated August 28, 1990 resulting into total turnover suppressed at Rs. 1,849 only. There is n .....

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..... by payment of compounding fee of Rs. 330, consequently taking the situation as a closed door matter only to consider and record a finding that the addition made by the assessing authority is really excessive in the appellant s case. 10. The Appellate Tribunal has also mechanically proceeded in the same manner, especially in paragraph 5 containing the reasoning by observing that the main case is that the estimated addition is excessive. 11. The learned Government Pleader strenuously urged that before the Appellate Tribunal, as is specifically recorded, the chartered accountant challenged only the excessive character of the estimate by contending that the suppression which ultimately centred round the figure 1849 has resulted inasmuch as .....

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