TaxTMI 
TaxTMI 
2008 (7) TMI 913
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....ealer-applicant is carrying on the business of sale and purchase of machinery parts. For the assessment year 2001-02 it produced the account books before the assessing officer for verification. The assessing officer rejected the account books on the basis of a document being bill No. 7099 dated March 13, 2002. The plea of the applicant that the said bill does not relate to it was not accepted by the order dated March 29, 2006. In the said bill a sale transaction of Rs. 12,760 is recorded. On the basis of the said document, the assessing officer assessed the suppressed taxable turnover to the tune of Rs. 21,00,000. The said order was challenged in Appeal No. 490 of 2006 before the first appellate authority who by the order dated February 6, ....
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....its that the third party could not be produced for cross-examination as it was not a registered dealer and the turnover assessed by the Tribunal is basically a question of fact which cannot be interfered with in the revision filed under section 11 of the U.P. Trade Tax Act. Considered the respective submissions of the counsel for the parties and perused the record. Although in the memo of revision three questions of law have been raised but the learned counsel for the applicant during the course of argument submitted that the following questions of law are involved in the revision. "(i) Whether, on the fact and circumstances of the case, the Tribunal was justified in rejecting the account books of the applicant without providing op....
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....dverse inference on this fact-situation. Reliance was placed on a decision of Commissioner of Sales Tax v. Faqir Chand Hazari Mal [1981] UPTC 656 by the learned counsel for the applicant in support of his submission. Section 7 of the U.P. Trade Tax Act casts legal obligation on every dealer who is able to pay tax under the Act to submit return of his turnover within the specific time. Under the said section, a dealer is required to maintain account books truly and correctly in the course of business. Under subsection (2) of section 7 if the assessing authority after making such enquiry as he considers it necessary is satisfied that the return submitted by the dealer is correct and complete he shall assess the tax on the basis thereof. If....
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.... less the similar phrase namely "shall be given a reasonable opportunity of proving the correctness and completeness of any return" has been used in the proviso to sub-section (3) of section 7 in the U.P. Trade Tax Act and therefore the law laid down by the apex court is fully applicable to section 7(3) of the Act, also. In Commissioner of Sales Tax v. Faqir Chand Hazari Mal [1981] UPTC 656, this court placing reliance upon the judgment of the apex court in the case of State of Kerala v. K.T. Shaduli Yusuff [1977] 39 STC 478 (SC); [1977] UPTC 363 held that assessment is the responsibility of the Department. The burden to prove that sale and purchased taxable lies on it. While determining it the Department can rely on evidence which is ad....