TaxTMI 
TaxTMI 
2008 (11) TMI 616
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....nt was based on a one-day survey?" Factual matrix: The assessee is engaged in the manufacture and sale of bakery products and for the assessment year 1996-97 they have reported a total and taxable turnover of Rs. 8,33,151 and Rs. 6,17,065, respectively. The assessee had claimed exemption on a turnover of Rs. 2,16,086 as second sales of biscuits and chocolates. However the returns submitted by the assessee was not accepted by the assessing officer on account of the suppression noticed during the test purchase made by the enforcement officials of the Department on December 14, 1996 and on December 16, 1996 as well as the survey conducted in the business premises of the dealer on September 5, 1996, September 6, 1996 and September 11, 199....
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....l by the assessee before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner confirmed the finding with regard to actual suppression in respect of the bakery products manufactured by the assessee and accordingly, the suppression worked out to Rs. 2,19,206 was ordered to be sustained. The Appellate Assistant Commissioner also found that the assessing officer has applied the results of survey for the entire year, even for the period not covered by survey and as such was of the opinion that addition was not at all necessary and unwarranted as the results of survey itself was the cumulative effect of non-maintenance of stock accounts and other defects noticed in the accounts. In such view of the matter, the Appellant Assi....
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....ful scrutiny of the records by the survey officials it was revealed that the consumption of raw materials like maida is not commensurate with the ultimate product. The dealer was not maintaining production-cum-stock account and as such in order to estimate the suppression, the assessing authority compared the quantum of production with reference to the consumption of raw materials like maida, sugar and dalda. In the said process, the assessing authority was convinced about the actual production of bakery items and the resultant sale and accordingly the actual suppression was determined. It was not a guess-work done by the assessing officer to determine the actual production. The method adopted by the assessing officer by analysing the produ....
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....n Breen v. Amalgamated Engg. Union [1971] 1 ALL ER 1148, observed: 'The giving of reasons is one of the fundamentals of good administration.' In Alexander Machinery (Dudley) Ltd. v. Crabtree [1974] ICR 120 (NIRC) it was observed: 'Failure to give reasons amounts to denial of justice'. 'Reasons are live links between the mind of the decision-taker to the controversy in question and the decision or conclusion arrived at'. Reasons substitute subjectivity by objectivity. The emphasis on recording reasons is that if the decision reveals the 'inscrutable face of the sphinx', it can, by its silence, render it virtually impossible for the courts to perform their appellate function or exercise the power of judicial....