- (1.) Heard learned counsel for the revisionist and learned standing counsel for the State. This revision has been filed by M/s. Polytech Paints being aggrieved by an order passed by the Tribunal for the assessment year 1997-98 whereby the Tribunal has imposed an additional tax of Rs. 73,516 upon the assessee.
(2.) The facts of the case are that the assessee was engaged in the business of manufacture and sale of low price paints and varnish. The assessee was registered under the provisions of the U.P. Trade Tax Act, 1948 as well as under the Central Sales Tax Act, 1956. The case of the assessee is that the assessee's books of account were accepted for the assessment year 1997-98 and thereafter 1998-99 and the tax return was increasing progressively.
(3.) However, in the assessment year 1999-2000 a survey was conducted on October 25, 1999 at the business premises of the assessee and during the survey the books of account of the assessee were found to be incomplete for the period August 2, 1999 onwards to October 25, 1999. According to the assessee, despite this finding at the time of survey, when its annual return had taken into account all the materials that have been discovered during the survey and disclosed its turnover for the year in question at Rs. 18,72,080 and tax at Rs. 1,63,180. However, the books of account of the assessee were rejected by the assessing authority who estimated the turnover of the assessee at Rs. 1,00,74,719 and tax at Rs. 10,06,877.72. The assessee filed an appeal against this assessment order and the first appellate authority reduced the tax liability to Rs. 4,57,500. Against this order in the first appeal, the assessee filed the second appeal and the second appellate authority has further reduced the tax to Rs. 2,36,695.;