V.K.Mehrotra, J. - (1.) This revision has come before us on a reference made by one of us who felt dubitant about the correctness of the observation made by him in an earlier decision in Bhagwan Das Mool Chand v. Commissioner of Sales Tax, U. P. 1980 ATJ 434.
(2.) The assessee, who is the applicant in this Court, was dealing in foodgrains and oil-seeds. The matter relates to the year 1977-78 during which there were several surveys at its business premises. One of such surveys was made on 27th October, 1977, at about 5.00 or 5.30 in the evening. Some loose papers were found during the survey at the shop containing mention therein of arrivals of foodgrains, etc. On scrutiny of the account books it was found that the transactions recorded in these loose papers were not incorporated in the books of account. The explanation given by the dealer was that the arrivals evidenced by these loose papers had taken place shortly before the survey and entries could not, therefore, be made about them in the books of account till after the survey. At the time of the assessment proceedings this explanation of the dealer was considered but the assessing authority found that it was not true. The dealer was not able to establish that the arrivals mentioned in the loose papers had taken place in the earlier part of the day. The assessing authority also found that some of the transactions were not entered in the books of account at all though entries had been made in respect of some of the transactions entered in the loose papers in the books of account. The assessing authority, therefore, rejected the books of account and determined the taxable turnover of the dealer by best of judgment. It made an addition in the taxable purchases of foodgrains and oilseeds to the extent of rupees twelve lakhs and two lakhs. It also made some addition in the taxable sale of oil-seeds.
(3.) The dealer failed to get the books of account accepted by the Assistant Commissioner (Judicial), Sales Tax, in appeal who, however, made some reduction in the taxable turnover. In a further appeal to the Sales Tax Tribunal also the dealer failed to secure acceptance of its accounts. The Tribunal, however, took the view that, in the circumstances noticed by it about the dealings of the applicant-dealer, the enhancement should be confined to rupees three lakhs and fifty thousand respectively.;