RAJES KUMAR, J. - (1.) PRESENT revision under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the'Act') is directed against the order of the Tribunal dated 15th March, 2000 relating to the assessment year, 1983 -84.
(2.) THE applicant was carrying on the business of manufacture and sales of iron bars and claimed to have maintained books of account in the regular course of business and disclosed gross and net turnover at Rs. 2, 31, 61, 439.63 and Rs. 2,26,47,703.63 respectively. Assessing authority rejected the books of account and estimated the taxable turnover at Rs. 2, 50,00,000/ -. Applicant filed appeal before the Deputy Commissioner (Appeals) Trade Tax, Kanpur, which was allowed in part. Deputy Commissioner (Appeals) Trade Tax, Kanpur vide order dated 2nd June, 1988 upheld the rejection of the books of account but has estimated the taxable turnover at Rs. 2,31,50,000/ -. Being aggrieved by the order of the Deputy Commissioner (Appeals) Trade Tax, Kanpur, applicant as well as Commissioner of Trade Tax filed appeals before the Tribunal. Tribunal by the impugned order dismissed the appeal of the applicant and has allowed the appeal of the Commissioner of Trade Tax. Tribunal has restored the order of the assessing authority. Tribunal held that at the time of road checking by the STO (SIB) Mobile Squad on 9.12.1983, three kilometer away from the Factory, two thelas bearing No. 257 and 491 were checked in which 5.390 tonne round bars valuing Rs. 21.500/ - were found. Along with the goods gate pass and bill were not available and one Challan No. 630 dated 9.12.1983 was produced. Having doubt about the entry of such goods in the books of account survey was made at 7 O'clock at the factory where Sri A.K. Maheshwari, Factory Manager was present. He admitted that challan No. 630 dated9.12.1983 was not issued from the regular challan book. Regular challan book was found issued upto challan No. 627. The factory gate pass was also not issued for the checked goods while the same was being regularly issued for the clearance of the goods from the factory. It was told by the Factory Manager that in hurry challan was prepared on the loose paper and gate pass was not issued. At the time of survey, books of account was found written upto 6.12.1983 and cash balance as per cash books was Rs. 89,915.35 paise, while on counting a sum of Rs. 10,920/ - was found. Tribunal also observed that 10 percent loss was shown as against normal loss of about 7 to 8 percent. Tribunal observed that the first appellate authority has not given any basis for reducing the turnover. Looking to the facts and circumstances of the case, Tribunal found that the estimate of the turnover by the assessing authority was justified. Heard learned Counsel for the parties.
(3.) LEARNED Counsel for the applicant submitted that in the assessment year, 1981 -82 and 1982 -83 disclosed turnover at Rs. 19,13,477.52 and Rs. 87,85,884.22 respectively were accepted, while in this year progressive turnover has been disclosed. He submitted that at the time of survey no defect was found in the books of account. He submitted that the total value of the goods checked at the time of road checking on 9.12.1983 was only 21,500/ - and looking to the aforesaid amount enhancement made by the first appellate authority was reasonable and the Tribunal has illegally restored the enhancement made by the assessing authority which was about Rs. 23 lacs.;