Purchases/Sales suppression cannot be based on ‘Eye Estimation’ of Stock

Subham Marbles Vs State of Odisha (Orissa High Court) Court has emphasized that there cannot be an automatic enhancement of taxable turnover on the basis of eye estimation by the Assessing Officer. In other words, relying on the decision in Mahabir Rice Mill v. State of Orissa 1983 54 STC 218 (Ori), it was held that in the absence of any material to establish the goods found short have been sold, it is not possible to the Department to simply enhance the taxable turnover on the basis of ‘eye estimation’. Accordingly, the question framed is answered in negative i.e. in favour of the dealer...