TaxTMI 
TaxTMI 
1983 (8) TMI 244
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....ermination, they were put on notice and after scrutiny of the account books certain exemptions claimed were disallowed and also after taking into reckoning the spot inspection reports finding certain variations, some amounts were added to the turnovers. The petitioners also disclosed voluntarily, in the case of T.R.C. No. 39 of 1981 Rs. 25,000 worth of stock and in the case of T.R.C. No. 27 of 1981 Rs. 35,000 worth of stock. Hence, notices were given to show cause as to why they should not be subjected to best judgment assessments. Replies to the notices were furnished and thereafter the Commercial Tax Officer turning down the claims and objections raised by the petitioners, assessed them by adding the entire value of the stocks that were d....
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.... of Rs. 2,64,012.18. The Commercial Tax Officer after due notice to the dealer and on verification modified the net turnover to Rs. 2,64,985.95. Then, on the basis of the inspection report wherein he found certain variations regarding sales of certain motor parts, he estimated the probable suppression at Rs. 1,600. Thereafter, the dealer voluntarily disclosed Rs. 25,000 said to be the value of goods credited to the capital account and debited to the goods account and purported to have been done on the ground of his voluntarily disclosing income under Act No. 8 of 1976. To this a notice was issued on 11th August, 1976, directing the dealer to file objections, which were filed on 23rd August, 1976. In the objections it has been stated inter ....
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....s confirmed resulting in the dismissal of the second appeal. Before adjudicating, the facts pertaining to this item of voluntary disclosure, since there were divergent views as to the mode reflecting in the books of account vis-a-vis the goods valued at Rs. 25,000 whether actually purchased and also sold or is it a mere book entry by debiting the goods account, may be cleared. Sri Venkataramana, the learned counsel for the department, based on the observation of the Commercial Tax Officer in his assessment order, viz., "the dealer disclosed voluntarily Rs. 25,000 worth of stock which are not accounted for in their accounts", and also that of the Appellate Tribunal, viz.: "It is admitted before us that the appellants had certain undisclos....
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....id to have been purchased has been actually sold during the assessment year, as these goods attract tax at the point of first sale, the same cannot be reckoned as forming part of the turnover. Therefore, the principal question is whether the stock worth Rs. 25,000 or the value thereof, disclosed under voluntary disclosure scheme, has been actually sold during the year in question, so as to form part of the turnover; and so on whom the onus lies? Before adjudicating, we may usefully refer to the decision of the Supreme Court in Girdhari Lal Nannelal v. Sales Tax Commissioner [1977] 39 STC 30 (SC) wherein the facts in short were that a cash-credit entry of Rs. 10,000 in the account books of the appellant-firm in the name of the wife of one o....
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....ount with the income of the appellant as a result of sales. In the absence of such material, the mere absence of explanation regarding the source of the amount would not justify the conclusion that the amount represented profits of the appellant deriving from undisclosed sales". The observations of the Appellate Tribunal, viz., it is admitted before us that the appellants' had certain undisclosed and unaccounted stocks. The plea denying liability to sales tax in respect of such stocks can legitimately be canvassed on the following grounds: (i) that the goods held in stock are not at all liable to tax either at the point of purchase or at the point of sale or such goods qualify for exemption under section 8 or 9 of the A.P.G.S.T. Act, (i....