- (1.) The Revenue is on appeal as against the order passed by the Tamil Nadu Sales Tax Appellate Tribunal in respect of assessment year 1991-92. The following substantial questions of law are raised for consideration: (i) Whether in the facts and circumstances of the case, the Tribunal is correct in accepting the explanation given and documentary evidence adduced for the first time before it contrary to Section 39-B(3) of the TNGST Act and in the absence of leave obtained as per Regulation 12(i) of the Tamil Nadu Sales Tax Appellate Tribunal Regulations? (ii) Whether in the facts and circumstances, the Tribunal is right in setting aside the estimation suppressions based on documents produced at the stage of second appeal and without appreciating the materials on record independently? (iii) Whether in the facts and circumstances, the consequential reduction in penalty levied under Section 12(3) at 50% by the Tribunal is legally sustainable?
(2.) The Assessee's business was subjected to inspection on 20.9.1991, wherein, certain records were recovered on issue of D7 receipt. Originally, records seized were verified with regular accounts, which reflected unaccounted transactions. It is seen from the order of the Assessing Officer that the seized materials consisted of long size account book and half size account book. Based on the entries found therein, notice of assessment was issued, to which, there was no reply, nor the Assessee produced regular accounts maintained for the year 1991-92. Thus, on the strength of entries found in the records, best of judgment assessment was made with two times addition made to cover the period prior to the inspection.
(3.) Thus, the turnover of Rs. 77,05,680/-was treated as taxable turnover. The Assessing Officer also levied penalty.;