2011 (7) TMI 1077

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....he normal requirement of electricity for crushing a given quantity of boulders and its output, the assessment of the dealer was finalised that 8 units of electricity was required for crushing for production of 1 unit of jelly. The assessee pointed out that apart from its own crushing unit it was doing cooly crushing too. In the reply filed to the notice of assessment, dated February 1, 1994, the assessee contended as follows:-     "1. Cooly crushing is a regular practice in the line of trade.     2. The assessee was doing crushing regularly to the people who brings boulds from the quarries.     3. All accounts of the assessee are properly supported by vouchers. No make belief records cre....

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....istical survey to estimate the turnover, the Appellate Assistant Commissioner pointed out that the survey was done long before the assessment year and the survey team had not taken note of the normal wear and tear of the machinery. Apart from that the voltage fluctuation, varying sizes and hardness of boulders, delay in feeding the crusher continuously, feeding of oversized jellys again and again for making them into proper sizes, are all the factors, which ought to have been taken note of while fixing the turnover. Thus, the Appellate Assistant Commissioner adopted 12 units of electricity for crushing 1 unit of jelly. Thereby, the first appellate authority re-fixed the turnover at Rs. 13,90,500, as against the originally fixed turnover of ....

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....sing officer, adopted 9 units of electricity for 1 unit of jelly obtained. The said conclusion was arrived at by taking the total electricity consumption and the output turnover as contained in the books of accounts. In so calculating the turnover, the Joint Commissioner fell into the same error as had been submitted by the assessing officer. In the circumstances, the learned counsel for the assessee submitted that except for the statistical survey done in the earlier assessment year, there was no survey done or an inspection conducted during the material assessment year under consideration. Even applying the statistical survey report obtained in the earlier year, there is hardly any attention paid to the wear and tear of the machinery to a....