The Tribunal, being the ultimate fact-finding authority, is entitled to estimate the correct addition on the basis of the facts available on record, and its findings cannot be interfered with in revision.

THANIKKACHALAM, J.

The department is the petitioner in both these revisions. These revisions are directed against the order passed with regard to the quantum of addition and the cancellation of the penalty. The assessee is a dealer in brassware at Kumbakonam. The assessee declared a total and taxable turnover of Rs. 47, 18, 006.07 and Rs. 29, 94, 055.57 respectively for the assessment year 1979-80. The assessee is maintaining only pattarai account. The production-cum-stock accounts were not maintained. The place of business was inspected and the place of residence of one Kasinathan Chettiar was also inspected. No defects were found in the residence. The stock verification held at the shop revealed difference of 292.25 kg. in brassware and the suppression was estimated at Rs. 32, 120 at 4 per cent by adding five times the actual suppression.

2. Karpagam Metal Rolling Mills at Thiruppur was also inspected. In the inspection 131 slips were recovered with a file containing 45 letters, used forms XXP, 49 leaves, godown issue register, two exercise note books, etc. On verification of entire records, it was found that purchase of 4 tonnes of brass scraps were not accounted for. There were also excess stock in brass billets, brass scraps and copper scraps and deficit stock in brass cuttings, and zinc scraps. In respect of branch at Anupparpalayam no manufacturing account was maintained. Hence the assessing officer rejected the accounts as incorrect and made a best judgment assessment. The assessing officer estimated the suppression at Rs. 2, 98, 383. A penalty of Rs. 3, 797 was levied under section12(3) of the Tamil Nadu General Sales Tax Act, 1959. Consequently, the additional tax was levied at 0.7 per cent of taxable turnover. For the sales effected at Thiruppur surcharge was levied at 5 per cent.

3. Aggrieved the assessee filed an appeal before the Appellate Assistant Commissioner. On appeal the Appellate Assistant Commissioner held that an addition of two times will be sufficient instead of five times as done by the assessing officer. The suppression in the head office is fixed at Rs. 19, 272 the purchase suppression under section 7-A of the Act was determined at Rs. 57, 243. The estimated sales suppression of brass sheets and circules was determined at Rs. 1, 52, 413. Thus the taxable turnover comes to Rs. 2, 09, 656. In the order the Appellate Assistant Commissioner pointed out that if 50 per cent is added to the purchase suppressions, it would be sufficient to meet the ends of justice.

4. As against this order, the assessee preferred appeals before the Appellate Tribunal. Aggrieved by the order passed by the Appellate Assistant Commissioner, the department has also filed an enhancement petition. Considering the facts arising in this case the Tribunal determined the addition at Rs. 1, 25, 000 for the Tiruppur branch as against Rs. 2, 09, 656 sustained by the Appellate Assistant Commissioner. The Tribunal took the view that there is also no need to make out the case for further probable addition of 50 per cent. The Tribunal also held that where there is suppression with regard to the purchase and the suppressed sale, there is no need to make separate addition under section7-A of the Act. The Tribunal was also of the view that there is no case for levying penalty, since clear suppression was not established by the department. It is against this order, the department is in revision.

5. The learned Additional Government Pleader (Taxes) submitted that there was suppression of stock variation. There is evidence on record to show that the assessee purchased raw materials outside the books. On account of that there is also sale suppression. The assessing authorities estimated the purchase suppression and the sales suppression and made additions separately under both these heads. While so, without assigning any reason any reason and without any basis the Tribunal reduced the addition to Rs. 1, 25, 000 from Rs. 2, 09, 656 sustained