Unsupported tamarind sales addition set aside where no evidence showed the assessee actually made such taxable sales.

Taxable sales could not be attributed to the assessee on the basis of a general assumption that vegetable sellers may also sell tamarind. In the absence of evidence showing that the assessee actually sold tamarind, the inference that part of the turnover represented taxable tamarind sales was unsustainable. The addition was therefore set aside and consequential tax relief followed.

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Issues: Whether the addition of taxable sales on account of alleged tamarind sales was sustainable in the absence of evidence.

Analysis: The assessment had proceeded on the assumption that vegetable sellers often sell tamarind and, on that basis, a part of the turnover was treated as taxable at 7 per cent. No material on record established that the assessee had in fact sold tamarind. A mere general possibility that such goods are sometimes sold by vegetable sellers was held insufficient to justify the inference that the assessee had made such sales.

Conclusion: The finding treating any part of the assessee's turnover as taxable tamarind sales was set aside and the assessee was held entitled to consequential tax relief.

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