1991 (10) TMI 285

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....siness premises on March 27, 1977 and three slips were recovered. From two of the slips purchase omission was noticed and the sale value was estimated at Rs. 20,115. To the extent of the suppression penalty was levied under section 12(3) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter called "the Act") to the tune of Rs. 1,207. After notice to the assessee, the assessing authority fixed the total and taxable turnover to the best of his judgment by adding the said sum of Rs. 20,115 as suppressed turnover. On appeal, the appellate authority sustained the addition based on the slips recovered from the place of business only to the extent of Rs. 1,595 and deleted the balance of Rs. 18,520. He also deleted the levy of penalty. In suo ....

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....the slips of the paper. Subsequently on April 6, 1977, one of the partners had been examined with reference to the slips. In that statement it was explained that at the time of visit of the partner, the agriculturists had agreed to send certain quantity of tamarind against certain names and that the entire quantity promised had not been received by the assessees. The slips only contain such entries based on the promise of the agriculturists. The assessing authority found that there was no correlation between the entries in the account book with the names mentioned in the slips of paper. A few days before the appeal was heard on September 20, 1978, the affidavits of certain agriculturists were filed before the appellate authority. With a vie....

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....tatement given by the partner on April 6, 1977 that these particulars referred to in the affidavits had not been disclosed. If we examine the natural conduct of a person when confronted with slips of paper recovered in a surprise inspection, the immediate reaction would normally, be to tell the officer that the entries in the slips of paper referred to a particular agriculturists and the real names of the agriculturists had been recorded in the books. On the other hand in this case the assessees did not give such an explanation soon after the date of inspection. More than a year later, at the time of hearing of the first appeal, the affidavits were filed concocting a novel story. The real fact is that the names and the quantities. mentio....