AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (10) TMI 211
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....were found and on that basis the assessing authority issued a notice under section 7(3) of the U. P. Trade Tax Act, 1948 (hereinafter referred to as "the Act"). The assess ing officer rejected the books of accounts and the disclosed turnover on the ground that day-to-day entries have not been done in the register of raw material. It was also noticed that vide bill No. 170 dated December 12, 1998 of awadh products and bill No. 348 dated December 12, 1998 of M/s. Kanchan Udyog, Kanpur, certain quantity of catechu was purchased, which was not entered in the books of accounts. The assessee took the stand that the said catechu was directly sent for grinding and since it was not received that day and as such it was not entered. The discrepancies ....
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....that the impugned order of the Tribunal is wholly arbitrary, and illegal for the reason that rejection of books of accounts and addition in turnover are two separate things. For non-maintenance of stock register of raw material or for any discrepancy therein the books of accounts may be rejected, but addition in the turnover cannot be made, unless any positive evidence of suppression of turnover and sale or purchase is found. He submits that no evidence has been brought on record by the assessing authority while making the addition in the dis closed turnover that any sale or purchase has been suppressed. He submits that in the absence of any such evidence the rejection of disclosed turnover is wholly unwarranted and the Tribunal should not ....
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....separate and distinct processes, which ought not to be mixed up. The assessment on best judgment is a quasi-judicial function, which cannot be discharged lawfully without an objective appraisal of the relevant material and the attending circumstances place on record. Whether the turnover returned by a dealer should be accepted or whether a higher turnover should be estimated by the assessing authority, it was held, must depend upon the facts and circumstances of each case. 9. The power of the Tribunal to remand the case for further investigation in an appropriate case, cannot be disputed. What is to be considered is whether on the facts of the case, the Tribunal was justified in exercising that power and directing the assessing authority t....
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....e returned by the revisionist-assessee." Sri Nimai Das submits that it is undisputed that the stock register of raw material was not properly maintained and discrepancies were found. Under the circumstances, the rejection of books of accounts was correctly done by the assessing officer. The assessing officer has made addition in the turnover on the basis of material available on record and, therefore, the order of the Tribunal remanding the matter to the first appellate authority cannot be interfered with. I have carefully considered the submissions of the learned counsel for the parties and perused the record. It is undisputed that there was discrepancies in maintenance of stock register and for that reason the books of accounts of the ....
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.... the estimation of the turnover to the best of judgment of the assessing authority. Having upheld that the account books of the assessee were liable to be rejected, the learned judge of the High Court was wrong in holding that the defect is of a technical nature and the account books should be accepted. We set aside the decision of the High Court and direct that the estimated turnover of the dealer as upheld in appeal, shall stand restored. The appeal is allowed. However, in the facts and circumstances of the case, there shall be no order as to costs." In the impugned order, the Tribunal has referred to the judgment of this court in the case of Luxco Electronics, Johnstonganj, Allahabad v. Commissioner of Sales Tax [1981] 48 STC 540 (All);....
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....9;If the account books are rejected, the turnover has to be determined to the best of the judgment of the assessing authority concerned. We are unable to uphold the view that a defect in non-maintenance of stock register is only technical and so the turnover disclosed in the account books should be accepted.' The bottom line is what is the fun of rejecting the account books if the turnover is accepted. But determination of turnover is a question of fact to be determined on the basis of material on record. In my opinion, in this case the account books of the appellant are worthy of rejection. So far as the determination of turnover is concerned, learned assessing authority has not given any cogent basis or logical reason for the same. Th....