9911796707
TMI Blog1996 (10) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... resort is taken as a closed door affair. 3.. For the assessment year 1988-89, the assessee returned form No. 8 showing total turnover at Rs. 11,18,792.05. The assessee is the proprietor of a jewellery business in the name and style K.G.P. Jewellery situated at Mutoor, near about Kalady. 4.. The books of accounts produced were rejected, on the basis of the inspection dated January 28, 1989 by the Intelligence Squad, Mattancherry, leading to the subsequent verification of the books of accounts produced in the light of the details gathered by inspection. The date, January 28, 1989, is at the fag end of the assessment year practically. 5.. We get material with regard to the resort to rejection of accounts and consequent proceedings to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nferences are sought to be drawn. They are, firstly, there was substantial cash balance on every day in the jewellery section in addition to the cash balance in China clay section, which was shown as kept idle as per the accounts. Loan was seen taken from the bank paying huge interest; secondly, it is observed that there is always a relationship between the running stock and the annual sales turnover in a jewellery business and the situation was in the nature of an exception. It is specified in the order of the Sales Tax Officer, in the following manner: The situation appears to have resulted in the issuance of notice to invite objections, which were received by the letter dated December 23, 1989. A detailed reply is given by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of addition. 10.. The Sales Tax Appellate Tribunal, Additional Bench, Ernakulam, in the appeals filed both by the assessee as well as by the Revenue, has also not considered the lifting up of the veil and has mechanically dwelt upon the smallness of the suppression detected at the fag end of the year and that too for the purpose of considering the required addition. 11.. In our judgment, rejection of accounts and resort to best judgment are not matters that become a closed door situation and to be accepted as a matter of course. It should not appear that the appellate authority should accept the fact of rejection of accounts and resort to best judgment assessment as a situation that cannot be disturbed any time in any situation. In o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their mind that the assessee though a jeweller in the yellow metal and white metal has been accepted by the department in regard to all that is stated not far off but in the previous year itself. As compared to the previous year, he had shown taxable turnover at five times in comparison. In our judgment, the facts do not warrant rejection of accounts much less the consequent resort to estimation on best judgment. 12.. For all the above reasons, we quash and set aside all the three orders, viz., the order dated December 29, 1989 (annexure I), the order dated May 8, 1990 (annexure II) and the order dated December 8, 1993 (annexure III) and consequently direct the appellate authority to proceed with the assessment on the basis of the total t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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