9911796707
TMI Blog2008 (4) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... ently assessments were made after rejection of books of account and on estimation of turnover. Suppression in accounting of inter-State purchases was found by the Department after verification of their books of account with reference to arrival of goods to the petitioners entered in the registers maintained at the border check-posts in the State. Even though rejection of books of account was confirmed in two levels of appeals, including the Tribunal, some modifications have been effected in the estimation of turnover or the additions to the turnover made by the assessing officers in the course of assessments. However, the Tribunal did not accept the petitioners' case that addition on the ground of suppression of inter-State purchases sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arriving at the conclusion which is to the effect that the Department, could have verified the registers maintained at all the checkposts pertaining to inter-State purchases made by the dealer concerned, and made further addition, if there was proof of more suppressions. The Division Benches were of the view that in the absence of proof of further suppression found after verifying the check-post records, the assessing officer has no justification to make addition on account of suppressed inter-State purchases over and above the actual suppression found by the Department. The Special Government Pleader appearing for the respondent on the other hand contended that it is for the assessee to prove that his books of account are full and complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act that there are ever so many small roads connecting this State with other States along which no check-post is set up. In fact cases pertaining to smuggling of goods in and out of Kerala through such roads reaching this court are several in number. Above all going by the volume of goods arriving in Kerala it is physically impossible for the Department to verify check-post records of all the check-posts for the purpose of checking whether a dealer in Kerala has accounted his full inter-State purchases. Therefore we feel, the view taken by the Division Benches in the above two decisions that the Department can get information about full inter-State purchases or stock transfers from check-post registers is neither correct nor realistic. In f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edibility of the dealer and once his credibility is doubted by the Department, the onus is n the dealer to prove that other transactions are fully accounted by him. The cases before us pertain to dealers who are found to have practised suppression in inter-State purchases. If the view expressed by the Division Bench in the above two decisions is followed, then in the absence of finding of any other suppression of inter-State purchases, after verifying the full check-post records, the assessing officer cannot make estimation of turnover or addition to the turnover except for the value of goods in respect of which suppression is proved. Proof of purchase suppression leads to only one conclusion that the accounts are incomplete. If the accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods through check-post dare to suppress such purchases, they are only trying to capitalize on the inadequacy of the Department to cross check the accounts with check-post records. In other words, they are well aware of the limitations of the Department in verifying the entire check-post records all over the State and cross-checking the correctness of the accounts of a dealer. In this context, we feel the assumption of the Division Benches in the above two decisions that the Department could have verified the check-post records of all check-posts in the State and found out suppression beyond the detected ones in the case of dealers concerned is unrealistic and therefore unacceptable. We are therefore of the view that the decisions of the D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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