THE STATE OF TAMILNADU REP BY THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES, (CT) COIMBATORE DIVISION Vs. TVL GOKUL TRADING COMPANY

JUDGEMENT

(1.) The respondent assessee is a dealer in ghee. The Deputy Commercial Tax Officer, by his proceedings dated 12.01.1998 determined a total and taxable turnover of Rs. 71,72,641/- as against the reported total and taxable turnover of Rs. 61,55,942/- and Rs. 59,57,492/- respectively. Having aggrieved by the order of assessment, the assessee preferred an appeal before the Appellate Assistant Commissioner, Coimbatore, who in turn modified the appeal. The assessee not satisfied with the modification preferred further appeal before the Tribunal disputing a turnover of Rs. 6,00,552/- and a penalty of Rs. 12,011/- levied under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act. The Tribunal, allowed the appeal filed by the assessee. Being aggrieved by the order of the Tribunal, the revenue has filed the present revision.

(2.) The material facts culled out from the statement of facts in the memorandum of grounds of revision is as follows:- The assessee's place of business was inspected by the Enforcement Officials and found that stock 5268 Kgs of Ghee has not been brought to the account. The alleged suppression worth about Rs. 6,00,552/- and on the suppression equal estimation has also been made. This was objected by the dealer by stating that actually there was no excess stock on the date of inspection; that the stock received from the villagers were kept pending for approval for the quality and the same was subsequently accounted for in the Approval Register at page No. 10 and purchases were also duly accounted for in the stock book on 12.11.1996 at page Nos. 10 and 11. In addition to that, the subsequent sale of the said quantity made by the dealer were also accounted for in the books and tax due there on were paid to the department. Since the alleged excess stock of ghee were accounted for in the books of accounts, the equal addition proposed is not warranted. However, the Assessing Officer has not accepted the explanation and confirmed the proposal by making the equal addition and the consequential penalty as return filed is incorrect and incomplete.

(3.) The ultimate fact finding authority, the Tribunal has accepted the contention of the dealer that the purchase of ghee which was found surplus at the time of inspection has subsequently account for at page Nos. 10 and 11 in the stock register on 12.11.1996 and have also effected taxable sales out of such stock and paid tax to the department is borne out of records and also held that if the addition is allowed, that would amount to triple addition on the same transaction. The Tribunal, considering the explanation offered and the facts and circumstances that the petitioner have accounted for such stock in the regular account and also brought the relevant sales into accounts, held that equal addition of the same turnover towards probable suppression is unwarranted and therefore cancelled.