2019 (8) TMI 6

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....ter parties arising from that common order of that Tribunal passed in Second Appeal No.739 of 2007 for A.Y. 2004-05 (Central). The Tribunal has granted partial relief to the assessee. Though, the Tribunal has upheld the rejection of the books of accounts of the assessee, it has restricted enhancement to the undisclosed turnover at Rs. 25,00,000/- for UP assessment and Rs. 35,00,000/- for Central assessment. 2. Heard Sri Nikhil Agarwal, learned counsel for the applicant-assessee and Sri B.K. Pandey, learned Standing Counsel for the revenue. 3. Learned counsel for the assessee would submit, the assessee is engaged in the manufacture of acetic acid, acetic anhydride and vinyl acetate. These goods are manufactured from the raw material....

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....ation of stock having been made by the SIB at the time of survey, no adverse inference can be drawn on the basis of exhibits, the learned Commercial Tax Tribunal, Noida as well as Joint Commission of Appeals were legally justified in rejecting the books of accounts of the applicant and enhancing the purchase of raw material on the basis of estimation based on surmises and conjectures even though the entire activity of purchase of raw material, production and sales are under strict control of U.P. Excise Authorities and necessary records are also maintained by them under the provisions of U.P. Excise Act? (ii) Whether in the learned Commercial Tax Tribunal, Bench Noida was legally justified in estimating the turnover of suppressed p....

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.... estimated the undisclosed purchase of raw material at Rs. 55,00,000/-. 5. Having heard learned counsel for the parties and having perused the record, in the first place, in absence of any credible explanation being submitted with respect to the three non-serialled used invoice, books seized from the assessee which record transactions of about Rs. 25,00,000/-, it has to be accepted that the Tribunal had not made any error in affirming the finding of rejection of the books of account as clearly the assessee was found maintaining parallel books. Insofar as the estimation of turnover is concerned, by way of first principle, it remains undisputed that certain amount of guess work is necessarily involved in such cases. This guess work was bas....