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TMI Blog2009 (8) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... he transportation of the silver anklets without bills was also available to the exact quantity, namely, 40.140 kgs, the assessing officer was able to value those items which worked out to a sum of ₹ 5,54,800. To that extent, the action of the assessing officer cannot be in any way faulted, but the assessing officer proceeded further and made an equal addition of the suppression and estimated it at ₹ 5,54,800 and the total suppression was thus arrived at ₹ 11,09,600 to which the taxable turnover reported by the assessee was added and the total taxable turnover was estimated at ₹ 15,98,191. When the aid action of the assessing officer was examined by the Tribunal, the Tribunal, at the outset, noted that there was no in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcement wing officials registered a case for transportation of 40.140 kgs of silver anklets which were not supported by any records and collected tax surcharge and compounding fee. When the enforcement wing officials inspected the place of business of the assessee on September 7, 1994, various defects were noted, including an excess stock of 4.244 kgs of silver. Based on the above factors, apart from the taxable turnover reported by the assessee, the actual suppression was determined at Rs. 5,54,800 to which equal addition amount was added towards probable omissions. In all, the total and taxable turnover was determined at a sum of Rs. 15,98,191. On that basis, tax was assessed along with surcharge and additional sales tax was assessed at R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er records as expected of it, there was only justification for the assessing authority to have made an equal addition in order to ensure that there was no falsification of the accounts. The learned Government Advocate referred to the decision reported in Commissioner of Sales Tax, Madhya Pradesh v. H.M. Esufali, H.M. Abdulali [1973] 32 STC 77 (SC), (ii) Indo Burma Stationary and Paper Stores v. State of Tamil Nadu [1984] 57 STC 290 (Mad) and (iii) P.M. Sundaram Company v. State of Tamil Nadu [1993] 90 STC 513 (Mad). As against the above submission, Mr. Lakshmanan, learned counsel for the respondent/assessee contends by placing reliance upon the decision of the honourable Supreme Court reported in Raghubar Mandal Harihar Mandal v. Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd. Sometime there may be innocent or trivial mistakes in the accounts maintained by the assessee. There may be even certain unintended or unimportant omissions in those accounts; but yet the accounts may be accepted as genuine and substantially correct. In such cases, the assessments are made on the basis of the accounts maintained even though the assessing officer may add back to the accounts price of items that might have been omitted to be included in the accounts. In such a case, the assessment made is not a 'best judgment' assessment. It is primarily made on the basis of the accounts maintained by the assessee. But when the assessing officer comes to the conclusion that no reliance can be placed on the accounts maintained by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court will make it clear that even while rejecting the account placed by the assessee as unreliable, while at the same time when the assessing officer gather very many details from the accounts as well as from other materials on which the assessing officer could place his hands, apart from gathering other information relating to the business of the assessee, the assessing officer is expected to make a honest estimate and must ensure that the same is not vindictive. The Division Bench of this court in the decision rendered in P.M. Sundaram Company v. State of Tamil Nadu [1993] 90 STC 513 has indicated that on consideration of the nature and pattern of maintenance of anonymous accounts, when suppressions found to be a continuous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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