2011 (6) TMI 713

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..... unal was right in law for application of the formula on the ground of non-maintenance of day to day stock book for the purpose of making best judgment assessment under section 12(2) of the Act?" The petitioner-assessee is a dealer in bearings. The relevant assessment year is 1993-94 and the assessee had reported a total and taxable turnover of Rs. 73,58,971 and Rs. 19,60,214. The assessing officer called for the records and checked the same. Later it was found that the dealers have not maintained stock registers even for inter-State purchases and there is no inventory on the opening and closing stock held and produced even though they have filed separate details under taxable/second sales items. There also was inspection by the enforcemen .....

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..... n accordance with law and the same has to be set aside. The learned Government Advocate appearing for the Revenue submitted that the assessing officer and the Tribunal came to the conclusion that the petitioner/assessee has not maintained any stock register for inter-State purchases and no inventory on the opening and closing stock held and produced even though the assessee filed separate details under taxable/ second sales items and also the trading account reveals a loss of ten per cent under first sales and profit of 34 per cent under second sales, which indicates that the figures furnished are not correct and represent true position. Therefore, the order passed by the Tribunal is in accordance with law and the same has to be confirmed. .....

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..... dopting the formula and restricting the claim of second sales. In respect of penalty, the Tribunal is not correct in levying penalty of Rs. 43,945 for the assessment year 1993-94 because certain discrepancies was found by the assessing officer in adopting the formula and made addition. It is also seen from the records that the figures and other things are taken from the account books only, otherwise the addition is made only on the estimation and therefore, we are of the view that it is not a fit case for levying penalty since the authorities restricted the claim by adopting formula and not as a concrete basis. We answer the question in favour of the assessee and against the Revenue and the appeal is allowed. No costs.
Case laws, Decis .....

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