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TMI Blog2000 (3) TMI 1049X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Lovely Thomas v. State of Kerala [1999] 113 STC 505, the present reference has been made to a larger Bench. 2.. The view expressed in Lovely Thomas' case [1999] 113 STC 505 (Ker), was that where unaccounted purchases are there, it is for the Revenue to explain as to wherefrom the unaccounted purchases were made. This conclusion was arrived at by observing that arrack could be purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidence produced and an inference to be drawn therefrom. There is a prima facie presumption that one who is found in possession of an article or thing is the owner thereof unless that presumption is rebutted by cogent evidence. Section 110 of the Indian Evidence Act, 1872 (in short "the Evidence Act") embodies a salutory principle of common law jurisprudence to that effect. (See Chuharmal v. Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n view of the above position in law conclusions in Lovely Thomas case [1999] 113 STC 505 (Ker), are not acceptable. 4.. The other question is whether an adverse inference warranting addition can be drawn when books of accounts are found to be not fully posted at the time of inspection. It would depend upon fact-situation of each case. If assessee explains the reason why books of accounts were f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrary. As to what would be the measure of acceptable evidence on either side is a varying factor depending upon the facts of each case. No rigid or inelastic formula can be laid down. When accounts are not reliable, best judgment assessment can be done. To sum up if accounts are not fully posted at the time of inspection, unless contrary is established by the assessee, the inevitable conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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