1991 (9) TMI 317

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.... to the Tribunal resulted in a remand order, mainly for the purpose of affording an opportunity to the respondent to produce their accounts. However, when a notice was issued by the assessing authority, after remand, the assessee neither produced his accounts nor cared to make a representation. The shop of the assessee had been inspected on October 17, 1972 by the Assistant Commercial Tax Officer. The Intelligence Wing Officer inspected both his shop and residence on May 29, 1972 and recovered certain account books and slips. There were also a stock of six imported watches and 31 watch straps. It was thus clear that the assessee was dealing in watches. From the account books and the records seized from the place it was found that there was ....

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...."In this case the turnover has not been disclosed both in the returns and also in the accounts and the assessment has been made on best judgment basis. The levy of penalty is therefore called for. I therefore find on the facts and in the circumstances of the case, that the assessing officer is justified in levying penalty at the maximum rate. I sustain the penalty levied." 3.. On second appeal the Tribunal confirmed the best judgment assessment with the following findings: "We are therefore satisfied that such other receipts also should have related to the sale proceeds of the watches as stated earlier. Further, admittedly the appellant was dealing in plastic goods and ladies bags, the books of accounts, relating to the fancy goods an....