1993 (11) TMI 215

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....has referred the following question for opinion of this Court: "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in reducing the enhancement from Rs. 65,89,000 to Rs. 6,00,000, when necessary nexus has been indicated in the assessment order but no nexus in Tribunal's order?" 2.. For the assessment year 1984-85 M/s. Ranital Rice Mill (hereinafter referred ....

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.... prevailing market price. By taking the prevailing market price the estimated sale price was fixed at Rs. 33,99,000 though the basis of quantification of suppressed turnover amounting to Rs. 65,89,000 has not been indicated in the order. In appeal the Assistant Commissioner maintained the enhancement. It was held that there was reasonable nexus for making the enhancement. In further appeal the Tri....

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.... relation to the paddy purchased, either accounted or unaccounted. We are constrained to add that determination of husk, division of bran into taxable and non-taxable items and other consequences after detecting shortage of 103.48 quintals of broken rice are all presumptions and surmises having no relation with omissions detected. We entirely agree with the learned advocate that estimations made a....

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....d is that necessary nexus was indicated while fixing the suppressed turnover at Rs. 65,89,000, and without indication of any reason for reduction, the Tribunal was not justified in reducing the quantum to Rs. 6 lakhs. The learned counsel for the assessee, however, submitted that the Tribunal found that the market price of 103.48 quintals of broken rice was to be fixed at Rs. 15,000. That was adopt....