9911796707
TMI Blog2008 (1) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... s without any basis. The fact that the value of the opening stock was at ₹ 840 was not disputed. It is also not disputed that the dealer had sold rice to FCI at the rate higher than the rate disclosed of the opening stock. The rice sold to the FCI was substantial in quantity. Further the explanation given by the dealer that the opening stock contained best quality of rice was supported by an affidavit and Department did not produce any material contrary to it to support its case that it contained in quality of rice.There is no finding of the authorities of the prevalent market rate of sale of standard rice and the lower quality rice. It is also not disputed that in the month of October when new crops come the price of the rice dras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the rice produced in that year was 9712.99 quintals. The total quantity of rice sold was disclosed as 12480.97 quintals. Further 579.88 quintals bran were also shown as sold in the relevant assessment year and 3624.25 quintals of husk were also sold. The dealer showed the closing stock as nil. The dealer further declared the sale within the State of U.P. amounting to Rs. 84,29,940. There is no issue with regard to the sales of bran and husk. With regard to the sales of rice made by the dealer within the State of U.P. the assessing authority was not satisfied with the average selling rate which was disclosed. It gave a show-cause notice to the dealer, calling upon the dealer to explain that when the dealer had admitted the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the fact that new crop of paddy comes into the market. These sales were shown at Rs. 330 to 360. The assessing officer disbelieved the explanation given by the dealer only for the reason that as quantity of rice shown in the opening stock was substantial, therefore, it must have contained some low quality and broken rice also. There is no other reason given in the assessment order for rejecting the rate of sale disclosed by the dealer. The assessing officer has not recorded any finding that the prevalent market rate of rice was higher than what the dealer had disclosed in its return. The dealer had produced the record containing local sales and the sales made to FCI during the assessment year in question. In the month of April an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of rice to the FCI, which is always the best quality as they cannot compromise in the sale made to the Government Department. The best quality of rice had been sold to the FCI at higher rate which has been disclosed by the dealer in its return. It was further submitted that the dealer was best person to disclose what quality of rice had been sold. The dealer had submitted affidavit and there was no material to rebutt the said affidavit or to record a finding contrary to it. The reasoning of the authorities below is purely based upon conjectures. It is further submitted that when all the account books of the dealer had been accepted, there was no justification to reject the selling rate disclosed by the dealer. In the absence of any ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in quality of rice. Further the account books of the dealer which were required to be maintained as required under section 12 of the Act had been duly maintained and no discrepancy was found in the same. Further it cannot be disputed that in the manufacturing of rice all qualities and grades of rice was bound to be produced which may contain whole and broken rice and certain lower grade qualities which would fetch lower price. There is no finding of the authorities of the prevalent market rate of sale of standard rice and the lower quality rice. It is also not disputed that in the month of October when new crops come the price of the rice drastically comes down. In view of the above, the orders passed by the authorities below appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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