2025 (10) TMI 3

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....dent was inspected on 14.11.1996. During inspection, serious discrepancies were found. It was noticed that purchases of gold issued to goldsmiths between July 1996 and March 1997, valued at nearly Rs. 12,00,000/-, were not recorded in the accounts. Similarly, sales of jewels for more than Rs. 12,00,000/- were also omitted. Apart from this, there were unaccounted purchases of old jewels weighing 159.750 grams and sales of converted ornaments weighing 147.750 grams. Further transactions involving more than 2,000 grams of gold, both on the purchase and the sales side, were not brought into the books. Stock variations also showed suppression of purchases and sales. In total, suppression of more than Rs. 60 lakhs was found, and with other connec....

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....ther the dealers were in possession of any records for the same and whether the turnover concerned was passed through accounts. 5. It is further contended by the learned Government Advocate appearing for the petitioner that the Tribunal failed to note that the dealers had not produced any evidence to prove that the entries found in the pocket notebook were only details relating to "coolie conversion," and hence, the order of the first appellate authority in deleting the turnover is not in order. The Tribunal failed to note that the assessing authority is the best judge, and the order passed by him cannot be substituted unless concrete evidence is put forth at the appeal stage. The dealers had not furnished any accounts, and merely relying ....

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....der of the Tribunal and prayed for dismissal of the revision. 9. Heard the learned counsel on either side and perused the materials available on record. 10. At the time of admission of this tax case, the following substantial questions of law were formulated by this Court: "(i) Whether the Tribunal is proper in passing the contradictory orders for 3 (three) different assessee sister concerns covering the 90 State Appeals summarily dismissing them which were praying to restore the orders of the assessing officer ? (ii) Whether the Tribunal's common orders granting relief to the suppressed turnovers, are factually correct ? (iii) When enough facts and evidences gathered at the time of shop inspection proves the findings of suppr....

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....aled transactions outside the books. The respondent admitted the discrepancies at the time of inspection. An admission made in such circumstances carries great weight and cannot be lightly ignored. Once the materials seized and the admission established suppression, the burden lay on the respondent to show that these were only job work transactions. No such supporting evidence was produced. The plea of "coolie conversion," raised only at the appellate stage, is therefore unconvincing. 12. It is also relevant that during the inspection, the respondent did not produce any supporting accounts, nor did he take the plea of coolie conversion. It was only at the appellate stage that he took this plea and attempted to adjust the accounts. This sho....