CONCEPT AND DEVICES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee is a dealer in telephone, voltage stabiliser, etc. They reported total and taxable turnover at Rs. 48,87,918 and Rs. 10,04,823 respectively for the assessment year 1998 -99. Their accounts were called for to check the details regarding sales of key telephone, sales of stabiliser and sales of battery. Their place of business was inspected on July 28, 1988 and stock variation was noted. Therefore a proposed turnover was made by adding the actual suppression and an equal amount of estimated suppression. In regard to this the dealer stated that they had not reconciled the stock variation and also objected to penalty and also contended that before the Enforcement Wing Officers they had admitted the difference only under their compulsion. The proposed turnover and penalty was confirmed. The appellate authority confirmed the above. The matter went to the Tribunal.

(2.) THE Tribunal accepted the plea of the assessee that they have documents to prove that the annual maintenance contract turnover is not taxable and that under similar circumstances for other assessment years the matter had been remanded by the Tribunal. Therefore, the Tribunal remanded the appeal with regard to the AMC turnover for verification of the records and passing of appropriate orders. But as regards stock variation of Rs. 1,69,809 and equal time addition thereof, the Tribunal refused to interfere on the ground that the discrepancy had been admitted.

(3.) THE learned Counsel for the appellant submitted that the reconciliation statement had been produced before the Tribunal but the Tribunal did not take note of it. While as regards AMC turnover the Tribunal had accepted the appellant's case that certain documents were available and could be produced and thereupon remanded the matter to the assessing officer. With regard to the stock variation though a reconciliation statement had been produced before the Tribunal, the Tribunal failed to take note of it.