Saumitra Dayal Singh, J. - (1.) Heard learned counsel for the assessee and learned Standing Counsel for the State.
(2.) The present revision has been filed raising the following questions of law; (i) Whether while applying for compounding application from 01.10.2002 the applicant has disclosed the stock as per accounts i.e. Abhilekhanusar and the summary of stock was also submitted wherein the stock of brick comes to 7,30,000 the authorities were justified in drawing an adverse inference against the applicant? (ii) Whether the authorities were justified in drawing an adverse inference that the applicant has sold 7,30,000 bricks without any rhyme or reason? (iii) Whether the selling rate fixed by the Trade Tax Tribunal at Rs. 1200/- against the disclosed selling of Rs. 1,000/- is justified? (iv) Whether selling rate of bricks fixed by the Trade Tax Tribunal without assigning any reason is justified? (v) Whether in any view of the matter, the order passed by the Trade Tax Tribunal is justified?
(3.) The present revision relates to the A.Y. 2002-03 for the period 01.04.2002 to 30.09.2002. The assessee was engaged in running a brick-kiln. While making the assessment for the A.Y. 2002-03 the assessing officer rejected the books of accounts of the assessee specifically with respect to closing stock of 7,30,200 bricks disclosed by the assessee as on 30.09.2002. In this regard the assessing officer had reasoned that production of bricks having arisen on 20.08.2002, it is difficult to believe that no part of such bricks would have been sold during the period up to 30.09.2002. In support of such reason, the assessing officer further relied on the disclosure made by the assessee in its application seeking compounding under Section 7-D of the U.P. Trade Tax Act, 1948 (hereinafter referred to as 'the Act') for the period 01.10.2002 to 31.0200 Since the assessee did not disclose any opening stock in that application for compounding filed by the assessee, the assessing officer found that the assessee did not have any closing stock. Specific finding in that regard was recorded in the assessment order dated 16.02005.;