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TMI Blog2016 (10) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... n proceeded to record that only computerized accounts were produced for his consideration. Obviously, the two are self contradictory. The Tribunal has also proceeded on the basis that the assessing authority had not recorded any satisfaction in respect of the transactions having been duly accounted for in the relevant books of accounts. It is on this basis that it has proceeded to hold that the assessing authority was clearly justified in rejecting the books of accounts. The Court then further finds that in both the assessment years, the amount of escaped turnover has been increased without reference to any material or record in support thereof. While it is true that a best assessment judgment undertaken by the assessing authority would nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an ₹ 262/-. This being the only ground and reason which weighed with the assessing authority for levying penalty upon the revisionist cannot be sustained. The orders imposing penalty are therefore liable to be set aside. Revision allowed - assessment proceedings remanded - levy of penalty decided in favor of revisionist - decided partly in favor of revisionist. - Sales/Trade Tax Revision No. 7 , 8, 9, 10 of 2011 - - - Dated:- 3-10-2016 - Hon'ble Yashwant Varma, J. For the Applicant : Krishna Agarwal For the Opposite Party : C.S.C. ORDER Heard Sri Krishna Agrawal, learned counsel appearing for the revisionist and Sri B.K. Pandey, learned standing counsel for the respondents. This batch of four revisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the Trade Tax Department in the State of Punjab which submitted a report dated 26 February 2007. On the basis of the material which was gathered in the course of the search as well as the material which the Department obtained from other sources, the books of accounts as maintained by the assessee were rejected and a best judgment assessment was undertaken. Insofar as the levy of penalty is concerned, the authorities found that the category of iron and steel products which were being imported into the State of U.P were referable to class 4, whereas the security which was paid thereon was that which had been fixed for class 3 items. This was taken as a ground to come to a conclusion that the import declaration form had been inaccurately an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insofar as the rejection of the books of accounts is concerned, Shri Agrawal referring to the assessment orders passed for the two years in question refers to the recital in the said orders to the effect that the purchases and sales which were claimed to have been effected by the assessee had been duly entered in the books of accounts and upon enquiry and scrutiny thereof found to have been faithfully and correctly recorded. In light of the same, Sri Agrawal submits that there was no material before the assessing authority to reject the books of accounts. He then further takes objection to the manner in which the estimated turnover has been computed and submits that even if the books of accounts had been rejected, the assessing authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken for the two years in question, this Court notes that the material which has been primarily relied upon by the respondents pertains to the A.Y. 2006-07. No categorical finding or cogent material relevant to A.Y. 2005-06 is referred to or relied upon before rejecting the explanation given by the revisionist. While the order of assessment itself carries a recital to the effect that the statement of accounts and relevant books had been produced and upon enquiry it was found that the sales and purchases had been correctly reflected and accounted for therein, the assessing authority curiously then proceeded to record that only computerized accounts were produced for his consideration. Obviously, the two are self contradictory. The Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evy of penalty, this court finds that the circular of the Commissioner by itself made a provision for situations like the present which stand raised in these revisions. The circular itself envisages a situation where an importing dealer incorrectly computes the security which was liable to be paid on the goods. It accordingly granted him the facility of depositing the balance amount due and payable at the time of entry of goods at the check post. The short fall if any in deposit of security was also liable to be taken into consideration while computing the ultimate tax liability of the assessee and while arriving at the correct figures of taxable turnover. The difference itself as has been pointed out by the learned counsel for the revision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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