YASHWANT VARMA,J. - (1.) Heard learned counsel for the revisionist and the learned Standing Counsel.
(2.) This revision calls in question an order of the Tribunal dated 11 September 2007 which has affirmed the rejection of books of account and a consequential best judgment assessment undertaken against the assessee.
(3.) As this Court peruses the order passed by the Assessing Authority, it is evident that the only factor which has weighed with the said authority to reject the books of account was an inability on the part of the assessee to produce before it all the relevant records with respect to transportation of goods by rail or by road. It is on this basis alone that the Assessing Authority proceeded to reject the books and undertook a best judgment assessment. A reading of the order of the Assessing Authority further reveals that no finding has been returned or recorded to the effect that all transactions undertaken by the assessee were not duly and faithfully recorded in its books. In the considered view of this Court, the mere fact that the assessee was unable to produce the transportation receipts could not have been a ground for rejection of books. This Court has held on more than one occasion that a rejection of books has serious consequences and cannot be resorted to unless there be sufficient material to evidence that the transactions being entered into, were not being faithfully recorded in the books or that the assessee undertook a course of conduct which evidenced an intention to evade payment of tax. In the absence of any such consideration made by the Assessing Authority, the Court finds unable to sustain the rejection of the books of the assessee.;