Turnover deletion for unsupported purchases sustained where records did not link sale notes to alleged transactions and presumption alone was insufficient.

Deletion of turnover relating to four disputed purchases was sustained where the Tribunal found no documentary evidence linking the sale notes to the alleged purchases from MMTC. The assessment, reopened under section 16 of the Tamil Nadu General Sales Tax Act, 1959 and revised under section 16(2) on alleged escaped turnover, could not be maintained merely on presumption once the record did not support the disputed transactions. The appellate authority had accepted delivery for only three transactions and retained the balance, but the Tribunal treated the remaining four purchases as unsupported on the evidence and deleted the corresponding turnover. The High Court found no basis to interfere with that factual conclusion and the revision failed.

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Issues: Whether the deletion of the turnover relating to four disputed purchases was justified on the ground that the purchases were not supported by documentary evidence and the assessment could not be sustained on presumption alone.

Analysis: The assessment had been reopened under section 16 of the Tamil Nadu General Sales Tax Act, 1959 and revised under section 16(2) on the basis of alleged escaped turnover. After remand, the appellate authority accepted delivery only in respect of three transactions and sustained the assessment for the remaining four on a presumption. The Tribunal, however, found on the record that the four purchases were not supported by documentary evidence correlating the sale notes with the alleged purchases from MMTC and therefore deleted the corresponding turnover. As the Tribunal's finding rested on appreciation of records and the assessment was being sustained only on presumption, no ground was shown to interfere with that factual conclusion.

Conclusion: The deletion of the turnover for the four disputed transactions was upheld and the revision was dismissed, in favour of the assessee.

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