TaxTMI 
TaxTMI 
1995 (9) TMI 351
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....s found that the place of business of the assessee was inspected by the Income-tax Department officers, who recovered certain records and also verified the stocks and noticed excess stock of 5.229 tonnes of iron and steel and also found undisclosed stock of 36.707 tonnes in the unregistered open-yard. The further investigation of the record recovered by the Income-tax Officer revealed that the assessee have sold 22 items of iron and steel goods, totally weighing 218.243 tonnes for which relevant purchase bills were not available. On the basis of this verification, the assessing officer arrived at the suppressed quantity as 253.346 tonnes and estimated the suppressed sales turnover at Rs. 7,60,038, taxable at 4 per cent and also levied a pen....
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....r of 22 items said to have been suppressed by the assessee. According to the learned counsel, the explanation offered by the assessee was not accepted by the department. It was further pointed out that when the department accepted the explanation of the assessee for 93 tonnes, it ought to have accepted the explanation offered by the assessee for the remaining 160 tonnes also. Therefore, it was submitted that when the sales turnover of 160 tonnes is included in the sales turnover of 531 tonnes, the contention of the department that sales turnover of 160 tonnes was not disclosed, is unacceptable. The learned counsel again pointed out that in the open-yard the goods belonging to other concerns were also deposited and the goods belonging to the....
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...., it was submitted that the Tribunal was not correct in reducing the suppressed sales turnover determined by the Appellate Assistant Commissioner. The learned Additional Government Pleader (Taxes), pointed out that admittedly the assessee is not having accounts for maintaining opening stock and closing stock. The details of the sale of 22 items as pointed out in the order of the assessing officer was not explained. The learned Additional Government Pleader (Taxes) further submitted that the assessee has also not furnished any explanation to show that the sales turnover of 160 tonnes is included in the sales turnover of 531 tonnes. According to the learned Additional Government Pleader (Taxes) since the sales turnover relating to 160 tonnes ....
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.... Assistant Commissioner accepted the explanation offered by the assessee for 93 tonnes and according to the Appellate Assistant Commissioner that inasmuch as the assessee failed to furnish explanation for 160 tonnes, he sustained the sales turnover of 160 tonnes as suppressed turnover, amounting to Rs. 4,80,000 which was further reduced to rupees two lakhs, on appeal by the Appellate Tribunal. The assessee submitted that the sale value of 160 tonnes is included in the sale value of 531 tonnes as shown by the assessee. The fact remains that the assessee is not maintaining accounts for closing stock and opening stock. In the absence of proof with regard to the abovesaid aspects, the department on physical verification of the document secured ....