TaxTMI 
TaxTMI 
1980 (11) TMI 142
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....essee and that relates to the year 1972-73. 2.. The assessee is carrying on business in jewellery at Chengannur. It is said that he purchases old gold ornaments, melts them, manufactures new ornaments and sells them. The purchase turnover of the old gold ornaments was brought to tax under section 5A of the Act and assessed at the general rate for all the three years aforementioned by the assessing authority. The assessing authority found that the accounts of the assessee could not be relied upon for the reasons stated by him in the orders of assessment and accordingly he rejected those accounts and estimated the taxable turnover of the assessee for the three years to the best of his judgment. The process adopted by the assessing authorit....
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....enue (Taxes), Ernakulam v. G.S. Pai & Company[1978] 41 S.T.C. 440., the Appellate Tribunal held that the purchase turnover of old gold ornaments could be taxed only at the rate of 1 per cent provided for bullion and specie (item No. 56 of the First Schedule). This conclusion was recorded by the Tribunal in respect of both the assessment years in question. As regards the plea of the assessee that the assessing authority was not justified in rejecting his books of account, the Tribunal held that there were material differences in the facts and circumstances brought out in the case in respect of the year 1971-72 and those pertaining to the year 1972-73. The Tribunal was of the opinion that there was no valid justification for rejecting the acc....
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....e appellate authority to interfere with the said fixation and substitute in its place the best judgment of the appellate authority which was not what was contemplated by the statute. Accordingly, the Tribunal restored the estimate of the taxable turnover made by the assessing authority but directed the assessing authority to apply to it the rate of 1 per cent and redetermine the tax liability of the assessee for the year 1972-73 on the said basis. 5.. In the revision petitions filed by the State (T.R.C. Nos. 161 and 162) the only point taken before us is that the Tribunal was wrong in holding that the turnover relating to the purchase of old gold ornaments fell within the scope of item No. 56 of the First Schedule to the Act and was henc....
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.... We see no substance in either of the aforesaid points raised before us by the counsel appearing for the assessee. All the authorities have concurrently found that the books of account maintained by the assessee did not truly reflect the state of affairs relating to his business and valid reasons have been stated by them for arriving at the said conclusion. There is no scope at all for any interference by this Court with the said finding concurrently entered by the assessing authority as well as by the first and second appellate authorities. On the question relating to the reasonableness of the quantum of taxable turnover, we consider the Tribunal was perfectly right in holding that the Appellant Assistant Commissioner had no justification ....