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TMI Blog1997 (7) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... rion for enhancing the turnover? (ii) Whether, on the facts and in the circumstances of the case the figures of three months could be taken into account for the entire period by taking into consideration the consumption of electricity? and (iii) Whether the Tribunal has not erred in law by omitting to deal with the deduction claimed for sales to Shanti Sarup Sons, a registered dealer? 2.. The year in question is the financial year 1980-81. A surprise inspection was carried out on the business premises of the assessee-petitioner by the officers of the department on March 26, 1981, as a consequence of which, the wheat receipt register, stock register and labour register, were impounded. Examination of the impounded record revealed su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppression of purchase of wheat on the one hand and suppression of sale of atta, maida suji and bran on the other. Counsel for the assessee then raised an argument that enhancement of sales could not be more than 76/53 of the sales returned by the dealer. According to him, 53 units represented the average consumption of electricity during December, 1980 and January and February, 1981, per tonne of wheat products, while 76 units represented units on the average per tonne of wheat products in the year. On this basis, the sales returned at Rs. 1,40,86,895 needed to be multiplied by 76/53 instead of 100/53 as had been done by the Assessing Authority. This plea of the counsel for the assessee was accepted by the appellate authority. The quantum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining the addition of the taxable turnover. The first appellate authority as well as the Tribunal found, on the basis of the material available on the record in the form of the impounded wheat receipt register, stock register and labour register, that there was a suppression in the purchase of wheat and in the sales of atta, maida, suji and bran. Both these authorities took consumption of electricity as a corroborative factor of suppression of purchase of wheat and sale of products made out of wheat. Consumption of electricity was taken as criteria for determining the quantum of gross turnover of Rs. 2,02,00,076. The plea of the assessee, as suggested from the question posed that while the Joint Excise and Taxation Commissioner had adopted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate authority as well as by the Tribunal. So, it cannot be held that the Tribunal took into consideration any irrelevant material which had not been taken into account by the first appellate authority while maintaining the addition of the taxable turnover, as suggested by this question. Accordingly, this question is answered in the negative, i.e., in favour of the department and against the assessee. 8.. Question No. 2: We do not find any substance in this submission. The Assessing Authority proceeded to revise the entire gross turnover on the basis of the evidence disclosed from the three registers. The books of accounts were rejected and the Assessing Authority proceeded to frame a best judgment assessment. While framing esti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from this that the assessee had large scale dealings outside the books of accounts. It is difficult for any officer to precisely guess the suppressed turnover and the same could only be arrived at by doing some guess work. 9.. The apex Court in Commissioner of Sales Tax, Madhya Pradesh v. H.M. Esufali H.M. Abdulali [1973] 32 STC 77, has held that in estimating any escaped turnover, it is inevitable that there is some guess work. In that case, it was found that for the period September 1 to 19, 1960, sales worth Rs. 31,171.28 had not been entered in the assessee s account books. Departmental authority rejected the books of accounts of the assessee and made additions in the gross turnover of the assessee for whole of the year on estimate b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dgment for that of the Assessing Authority. 10.. Accordingly, this question is answered in the affirmative, i.e., in favour of the department and against the assessee. 11.. Question No. 3: One of the arguments raised by the assessee before the Tribunal was that the assessee had made sales of the value of Rs. 7,07,281 to M/s. Shanti Sarup and Sons, a registered dealer. Shanti Sarup died in the year 1982. The assessee filed a declaration form signed by the son of Shanti Sarup. The declaration form was rejected and the sales made to M/s. Shanti Sarup and Sons to the tune of Rs. 7,07,281 were disallowed. The assessee s contention was that in the absence of any evidence of collusion between the selling and buying dealers, a presumption ..... X X X X Extracts X X X X X X X X Extracts X X X X
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