TaxTMI 
TaxTMI 
1987 (9) TMI 391
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.... the province and after having done the carving he manufactures several items for sale. Admittedly no manufacturing account has been maintained by the assessee, but he maintained the other accounts, namely, rokar, khata, ledger, purchase and sale register, form register, cash book, etc. No survey was conducted during this year on the assessee's premises. The assessing officer, however, rejected the book version of the assessee and enhanced the total turnover. He however accepted the sales effected within the State of U.P. The assessing officer held that the concealed sales of timber and sokhta had been made by the assessee. The best judgment assessment was made after having rejected the book version on the ground that no manufacturing accou....
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.... maintain the manufacturing account under sub-section (2) of section 12, as he is not liable to pay tax. The question is whether the assessee who is a manufacturer-dealer is liable to pay tax. It is not denied that wood carving items manufactured by the assessee are exempted from tax and that being so, the assessee cannot be said to be liable to pay tax within the meaning of sub-section (2) of section 12 of the Act, 1948. When he is not liable to pay tax on the exempted items, will he be required to maintain a manufacturing account? I quite agree with the assessee that he not being liable to pay tax on the items which he manufactures and sells, is not required to maintain account under sub-section (2). If he is found to be a dealer in timbe....