2009 (7) TMI 1190

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....r on the ground that the petitioner failed to establish the "escaped turnover" by merely relying upon extract issued by the Intelligent Wing of the Karnataka State. Admittedly, the only material relied upon for invoking section 16(1) of the Act, by the assessing authority was the extract issued by the Intelligent Wing of the Karnataka State stating that the dealers of Tamil Nadu purchased groundnuts from the Karnataka State for the value mentioned in the extract, which was brought to State of Tamil Nadu, and which value was not disclosed in the turnover reported by them. The stand of the dealers before the Tribunal was that merely based on the extract reported by the other State officials, the liability ought not to have been fastened on t....

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....tract to fix the liability on the dealers. We also quite agree with the learned authorised representative that even after the remand order of the Special Tribunal, no further evidences were produced on it is clearly an indication that the Department is not having any evidence other than the extract copy. By taking all these factors into consideration, we feel that the assessing officer is not equipped with any material to prove his claim that the dealers have purchased groundnut from Karnataka dealers and not accounted them. The business connection of the Karnataka commission agents with the dealers will not be a conclusive proof to show whatever the transactions accounted in the other State are genuine unless the purchasers' role has b....

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.... the invoices raised by the marketing committee were not made available. Based on the commission agent's account, an assessment cannot be framed against third parties in the absence of any materials without bringing the commission agent for cross-examination by the dealer. It is also further recorded that even after the remand order of the Special Tribunal, no further evidence was produced except the extract as nothing more than that was available with the Department and recorded an unassailable finding that the assessing officer was not equipped with any material to prove his claim that the dealers have purchased groundnuts from Karnataka dealers and not accounted them. 7.. While the business connection of the assessee with the Karnat....