1978 (1) TMI 89

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....ent for the year 1974-75. The assessee is the appellant. 2. The assessee carries on business in cloth, readymade garments, hosiery goods, Kambals and mosquito nets etc. at Bargarh. After examination of the books of accounts and on the basis of the fraud report, the following charges were brought:- (a) The purchase turnover was Rs. 4,64,801.20 and the sale turnover was Rs. 4,97,883.04. Thus t....

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....e other. Charge(a):- Disproportion between purchase turnover and sale turnover by itself alone will not bear foundation of a charge of suppression. But, it will be a very relevant factor when other charges of suppression are established. In support of the above finding I would cite:- Sitaram Raja Ram vs. Commissioner of ST U.P.(1) Solamal alim Singh vs. Commissioner of ST U.P.(2). I ma....

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.... Ganji and one Towel was vouched and accounted for, sale of two pieces of Bakram was suppressed. The assessee took the plea that he did not sell Bakram to Shri Patnaik at all and showed accounts of purchase of all dozens of Bakram from hawkers for Rs. 200 on 26th Jan, 1975. But the statement of Sri Patnaik, a respectable man to the effect that he had purchased two pieces of Bakram cannot be disbel....

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....he grounds for rejection of accounts. The charge is answered accordingly. Charge (d): The learned Advocate did not advance any argument on this charge. So, it can be presumed that he accepted the charge. 5. The above discussion of the charges will show that in the facts and circumstances of this case, the books of accounts are bound to be rejected and the assessment framed according to best ....