Invalid rejection of accounts books by revising authority overturned by High Court for lack of evidence.

The High Court of Allahabad considered the validity of rejecting the assessee's accounts books, which were disputed by the revising authority based on various reasons. However, lacking concrete evidence and support from the assessing and appellate authorities, the rejection was deemed unjustified. The court accepted the explanation for the absence of separate cash memos for retail sales as a reasonable practice, not indicative of tax evasion. Consequently, the rejection was overturned in favor of the assessee, who was awarded costs of Rs. 200.

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Issues involved: Valid rejection of accounts books of the assessee.

Summary:
The High Court of Allahabad, in the case before them, considered the question of whether the accounts books of the assessee were validly rejected. The revising authority had rejected the accounts books citing reasons such as sales being recorded after counting the till, absence of separate cash memos for retail sales, and discrepancies in turnover versions. However, it was noted that there was no concrete evidence to support these findings, and the assessing and appellate authorities did not provide any backing for the rejection. The only issue highlighted was the absence of separate cash memos for retail sales, which the assessee explained as a practice of passing a consolidated cash memo for all petty sales at the end of the day to reconcile with the books of account. The court found this practice reasonable and not indicative of any malpractice to evade taxes. Consequently, the rejection of the accounts books was deemed unjustified, and the question was answered in the negative in favor of the assessee. The assessee was awarded costs amounting to Rs. 200.

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