2019 (7) TMI 194

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rate of coal could have been enhanced by making addition to the freight charges in absence of any material in support thereof?" 3. The present revision has been filed by the assessee against the order of the Trade Tax Tribunal, Bench-V, Varanasi dated 15.09.2017 in Second Appeal No.652 of 2004 for A.Y. 2001-02. By that order, the Tribunal has dismissed the appeal filed by the assessee against the order of the first appellate authority. During the assessment year in question, the assessee was engaged in manufacture and sale of soft coke and undersize rejected coal. In its annual return, it had disclosed taxable return of Rs. 1,84,17,206/-. 4. In the assessment proceeding, the Assessing Authority doubted the correctness of the books of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee had purchased coal from a single seller nor it took into account, the fact that freight charges are not easily variable during an assessment year. The assessee having produced certain freight receipt with respect to similar transactions performed with the same seller from the same location, there was no reason to reject the books of account on a presumption that higher freight may have been paid by the assessee on other transactions. As to the other defects noted in the books of account, it has been submitted that the same were trivial in nature and not such as may have resulted in rejection of the books of account. 7. While the finding of the Assessing Authority was thus defective and erroneous, the Tribunal have compounded the m....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ncy and defects noted with respect to transit loss as also manufacturing account, it cannot be said that the order of rejection of books of account was erroneous. 12. Insofar as the estimation of the turnover is concerned, though while making a best judgment assessment, a guess work has to be made by the Assessing Authority and the assessee cannot question the exactness of the guess made insofar as such exercise may be found to be based on credible and reliable material, however, insofar as the addition has been made on account of freight charges, at present it does appear that the Assessing Authority did not have any material to make that enhancement. Perusal of the assessment order reveals that the reason for making the enhancement to ....