2010 (1) TMI 1113

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted on January 27, 1993, it was noticed that, (1) day book was found written for January 25, 1993, but the entries were incomplete; (2) purchase of coffee powder for Rs. 124.00 and paper cover for Rs. 55.00 on January 26, 1993 were not entered into accounts;   (3) bulk order for marriages and for other special functions are undertaken. But the sales turnover for such supplies is not entered into accounts; and (4) certain records relating to the business as found in "D7" slips were recovered for further verification with the regular accounts. A further inspection was also conducted on February 2, 1993 and March 23, 1993 and the records were verified with regular accounts on March 30, 1993 and March 31, 1993 relating to the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of 1½ times to the purchase suppression, we are not inclined to go into that question, in view of our consideration in respect of other two additions.  The learned counsel would submit that in the event these amounts added towards fuel suppression and wages paid are excluded, the total taxable turnover would come down below Rs. 18,25,000 and in that event, the petitioner is not liable to pay tax. Mr. Haja Naziruddin, learned Special Government Pleader, would, however, submit that both the above additions relating to fuel suppression and wages paid were made on the basis of books of account and therefore, they cannot be deleted from the total taxable turnover. He would submit that whenever there is estimation of any escaped....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... such conclusion as "unbiased and having some rational basis". We have carefully perused the assessment order. The entire discussion in the assessment order relates to purchase suppression of the taxable and non-taxable goods. There is not even a reference either as to fuel suppression or wages paid. There are no materials for the assessing officer to make additions of fuel suppression and wages paid. Though the learned Special Government Pleader would rely upon the above judgment to sustain the case of the Revenue, we are of the considered view that in fact the said judgment could be applied only in favour of the assessee on the given facts and circumstances of the case. Only in the event some materials are available, the best judgment ....