2019 (7) TMI 1201

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....ated 31.03.2000. The assessing authority had rejected the books of account and estimated the undisclosed turn over of medicines performed by the assessee at Rs. 10,00,000/-. 3. The present revision has been pressed on the following two questions of law namely: "(1) Whether the books of account of the assessee could have been rejected only because two post dated invoices while goods sold in pursuance whereof had been found at the transporter's premises, though such goods were accounted for in the books of account of the assessee? (2) Whether even otherwise against detection alleged undisclosed sale of Rs. 78,000/-, the estimation of undisclosed turn over at Rs. 10,00,000/- is wholly excessive and arbitrary?" 4. He....

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....ted 30.10.1997 was found recorded in the books of account of the assessee, the fact that it was postdated could not lead to rejection of its books of account. Even otherwise, it has been submitted, the best judgment assessment could not have been made estimating the undisclosed turnover at Rs. 10,00,000/- inasmuch as the transactions that were detected by the revenue were valued at Rs. 78,000/- and even those were recorded in the books of account of the assessee. In absence of any incriminating material fact or circumstance, the Tribunal has erred in rejecting the appeal of the assessee in entirety. 8. Learned Standing Counsel has resisted the present revision and submitted the findings recorded in the penalty under section 13A(4) of ....

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....r detected by him. It rules out arbitrariness and whimsical action. It prevents capricious exercise of power. 11. Keeping that in mind it does appear, in absence of any other material on similar transactions having been performed by the assessee during the assessment year in question, the assessing authority and the appeal authority have not been right in contemplating and allowing for more than ten fold increase in the turn over. Even as to the infraction detected, it is not a case of the revenue authority that the assessee's goods were found not recorded in the account. At present, the rejection of the books of account is being sustained on account of penalty having been confirmed by the Tribunal and that conclusion having been not....