M/S DEE KAY EXPORTS Vs. COMMISSIONER TRADE TAX
LAWS(ALL)-2017-10-207
HIGH COURT OF ALLAHABAD
Decided on October 27,2017

M/S Dee Kay Exports Appellant
VERSUS
COMMISSIONER TRADE TAX Respondents




JUDGEMENT

Yashwant Varma, J. - (1.)Heard learned counsel for the revisionist and the learned Standing Counsel.
(2.)This revision is directed against an order of the Tribunal dated 24 June 2004 which has upheld a rejection of books of account and a consequent best judgment assessment undertaken. The sole ground which had weighed with the authorities to reject the books of account is stated to be an incident which occurred on 26 June 1999 when three drums of mentha oil were apprehended on the ground that they were not accompanied by proper documentation. This led to the imposition of a penalty of Rs. 45,900/-. It is based on this circumstance alone that a best judgment assessment appears to have been undertaken by the assessing authority.
(3.)Surprisingly, the assessing authority records no reason for rejection of the books of account. The Tribunal in the considered view of this Court has clearly committed a manifest illegality in endorsing the said action of the assessing authority. It is well settled that a rejection of books has serious consequences. There is not a shred of evidence on the record to establish that the assessee was deliberately and and with studied intent suppressing turnover or not entering all transactions in the books of account. The mere fact that penalty was imposed on one occasion cannot in the considered view of this Court be sufficient to result in a rejection of books. Additionally, the Court notes that in a subsequent survey of the premises of the assessee undertaken on 23 July 1999, the relevant memos which formed subject matter of the penalty proceedings and the transactions which they represented were found to have been duly entered in the books.


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