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of <h1>High Court Upholds Remand Order in Tax Case Emphasizing Scrutiny Standards</h1> The High Court upheld the remand order in a case involving the rejection of account books due to high electricity consumption compared to oil production. ... - Issues:1. Rejection of account books based on high electricity consumption compared to oil production.2. Validity of the remand order passed by the Judge (Revisions).3. Comparison with a similar case - Radhey Krishna Ramji Prasad Oil Mills v. Commissioner of Sales Tax, U.P.Analysis:1. The case involved the rejection of the assessee's account books for the assessment year 1962-63 due to a perceived disproportionate consumption of electricity in relation to oil production. The appellate authority reduced the net turnover but upheld the rejection of accounts. On revision, the additional revising authority set aside the appellate and assessment orders, remanding the case for a fresh assessment after proper scrutiny of the accounts. The main issue was whether the rejection solely based on higher electricity consumption was valid.2. The High Court clarified that an order of remand can only be passed if further investigation is required on a previously decided point. It cannot be used to find new defects in the account books. Despite being inclined to rule in favor of the assessee, the Court noted a similar case precedent where the order of remand was upheld. The revising authority's finding that the account books were not properly scrutinized by the Sales Tax Officer influenced the Court's decision to answer the question in favor of the department.3. The Court referenced the case of Radhey Krishna Ramji Prasad Oil Mills, where the rejection of account books was also based on disproportionate electricity consumption. The Division Bench in that case upheld the remand order, emphasizing that the assessee should not escape assessment altogether. The Court acknowledged the possibility of directing reconsideration in such cases but ultimately answered the reference question in favor of the department, citing the revising authority's findings regarding the scrutiny of the account books.This detailed analysis highlights the rejection of account books, the validity of the remand order, and the comparison with a similar case, providing a comprehensive overview of the judgment delivered by the High Court.
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