1983 (3) TMI 250

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....aid by the customers as part of the sale price of timber. He also added a sum of Rs. 5,000 to the taxable turnover towards probable suppression of purchases in view of certain defects found in the accounts. Aggrieved by the addition of these two amounts in the taxable turnover, the assessee went before the Appellate Assistant Commissioner contending that there are no substantial defects in the accounts, and therefore, the addition of Rs. 5,000 towards possible suppression cannot be legally sustained and that the sawing charges being levied towards the post-sale services done by the assessee for cutting the logs purchased by the customers into pieces of particular specification as desired by the purchasers, can never be taken as part of th....

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.... which was the basis for making the said addition has been duly explained by the assessee with reference to the entries in the account books. We are not inclined to sustain the reasoning of the Board of Revenue that merely because the addition is nominal it cannot be sustained without going into the merits (sic). In this case, the Appellate Assistant Commissioner has gone into the merits and found that the discrepancy said to have been found by the assessing authority has been duly explained by the assessee, and therefore, no addition is called for under the head "probable omission and suppressions". In this view, we cannot uphold the order of the Board of Revenue restoring the addition merely on the ground that the addition is nominal. C....