1977 (4) TMI 53

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....ing the assessment for asst. yr. 1973-74. The assessee is the appellant. 2. The assessee carries on business of manufacture and sale of Gudakhu. In asst. yr. 1973-74 it disclosed gross and taxable turnovers at Rs. 1,81,550.29 and Rs. 1,44,611.91 respectively. The assessee mentioned only purchases and sales accounts. It did not maintain manufacturing account or stock accounts. In the year under ....

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.... mistake, defect or suppression in the books of accounts. For earning a low margin of profit, the books of accounts should not be rejected. Therefore, the returned turnover should be accepted. In support of the above contention reliance has been placed on 25 STC 501 and 26 STC 72. 5. According to s. 15 of the CST Act a dealer is required to maintain purchases and sales account. The assessee bei....

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....unts books are nor properly maintained. In another decision reported in Muralimanohar Prabhudayal vs. State of Orissa(2) it was held that if the books of accounts are found to be correct the rate of profit shown by the assessee should ordinarily be accepted unless it is specifically proved that in such line of business a high rate of profit is obtained. In the facts and circumstances of this case,....