1977 (7) TMI 72

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.... by an Inspecting Officer of the Department to the place of business of the assessee on 14th Nov., 1976. The Inspecting Officer found that the assessee had purchased a tyre for Rs. 251.45 from Madras Rubber Factory, Cuttack by invoice No. 57422 dt. 7th Nov., 1973. But the said purchase was not reflected in the purchase account. The fraud report was confronted to the assessee. On the first occasion the assessee explained that due to inadvertance necessary entry in the purchase account could not be made. But subsequently, it pleaded that a truck owner named Paramananda Sharma had purchased a tyre from Madras Rubber Factory Cuttack which was found to be defective. Therefore, he returned the defective tyre and brought a good one. This transacti....

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....gone into through the assessee. In the alternative, even if there was purchase suppression of the value of Rs. 251.45, in the absence any other defect in the books of accounts or any other suppression, the enhancement at best be limited to Rs. 251.45. The Addl. State Representative supported the assessment. 5. It is an undisputed fact that the assessee maintained purchase, sale and other accounts in detail. No defect was found therein. Except the instance in hand, no other purchase or sale suppression was noticed. 6. It was, however, noticed by an Inspection Officer on 14th Nov., 1975 that the assessee was in possession of an invoice dt. 7th Nov., 1973 for having purchased a tyre for the value of Rs. 251.45 from Madras Rubber Factory,....