Suppressed sales and penalty estimates sustained where inspection materials showed outside-book transactions and the record failed to rebut suppression.

Inspection records revealed transactions outside the books, supporting an inference of suppressed first sales. The appellate authority had already restricted the estimated turnover and reduced the penalties, including by applying a 50:50 approach to the nature of the transactions. As the record did not displace those findings or show absence of suppression, the sustained estimates of turnover and the reduced penalties remained supported by the evidence and the applicable penalty provision, and the Tribunal's confirmation was upheld.

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Issues: Whether the revisional assessments estimating suppressed first sales and the consequential penalties for the three assessment years were justified.

Analysis: Entries recovered in inspection disclosed transactions outside the books, and the authorities inferred suppression of sales from those materials. The appellate authority had already granted substantial relief by restricting the estimated turnover and reducing the penalties, including by applying a 50:50 approach to the nature of the transactions. The record did not furnish material to displace those findings or to show absence of suppression. In the circumstances, the sustained estimates of turnover and the reduced penalties were supported by the evidence and the applicable penalty provision.

Conclusion: The assessments and penalties as confirmed by the Tribunal were upheld against the assessee.

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