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TMI Blog2019 (2) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel for the assessee on following two questions of law: "1. Whether on the facts and in the circumstances of the instant case, the Tribunal was justified in confirming the assessment under Section 3-F on estimated basis while audited balance sheet and other accounts had been maintained in the ordinary course of business? 2. Whether on the facts and in the circumstances of the instant case, the goods can be treated as steel structure or steel structural?" 3. The present revision has been filed by the assessee against the order of the Trade Tax Tribunal, Bareilly dated 12.01.2004 arising from Second Appeal No. 43 of 1998 for A.Y. 89-90. 4. The assessee M/s. National Project Construction Corporation (NPCC) is a Government of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings, it's duly audited books of accounts were specifically accepted. However, certain additions were made by disallowing part labour expenses claimed by the assessee. Also, the assessee was subjected to tax on steel structurals. Other additions were also made by the assessing officer, however the same have since been deleted and therefore they do not call for any mention in the present proceedings. 7. Before the Tribunal, the assessee submitted, once its books of accounts had been accepted, there did not survive any legal or factual justification to make any addition by disallowing any part of labour expenses. On the issue of rate of tax, it was submitted steel structurals being a commodity falling under the description of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts of the assessee had been accepted, there was no room for application of Section 13 (3) of the State Act. No amount could have been added by disallowing any part of labour expenses. On the second aspect, it has been submitted that steel structurals as enumerated under Section 14(iv)(v) of the Central Act, included angels, joists etc. or any other old section and, therefore, even if the assessee were found to have imported such goods, the rate of tax could not have exceeded 4 percent. Those goods were declared under the Central Act. 10. Learned Standing Counsel submits, the burden to establish the true and exact expense was always on the assessee and insofar as it had been found, a wholly exaggerated claim had been made with respect t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thy of acceptance, no further enquiry was permissible to disallow part expenditure disclosed in such books of accounts. The exercise of acceptance of books of accounts curtails further enquiry as to genuineness and value of expenditure reflected in the books of account. Rejection of any part of expenditure may be made only after the books of accounts were rejected. Therefore, the assessing officer could not be permitted to both accept the books of accounts and yet disallow any part of labour expense recorded therein. 12. As to the second submission, it does not stand established from the record if any tax liability has been created in excess of 4 percent on any goods falling under the scheme of Sections 14 and 15 of the Central Act. Perusa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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