1980 (2) TMI 124

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....s paid by the assessee as per these certificates and as per his own account books did not tally, from which the ITO concluded that the accounts had not been properly kept. He also noticed that the transactions regarding payment of additional tax amounting to Rs. 8,275.40 in respect of Radha Talkies and Rs. 14.707.40 in respect of Krishna Talkies were not clear. He, therefore, applied the provisions of s. 145(1) and applying the net rate of 15 per cent on the gross receipts from both the cinema houses estimated the income at Rs. 37,200. Besides that he noticed that the assessee had withdrawn Rs. 41,000 from his capital account and started money-lending business. He asked the assessee to furnish the names of the debtors. The assessee categori....

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....er of the AAC shows that the reason for the same was that the assessee had got a petty cash book, transactions entered wherein not incorporated in its main accounts. It was explained to us by Mr. Atal that this petty cash book related to purchase of entertainment tax tickets which was exclusively the responsibility of the Manager and did not have to do anything with the assessee's profit or loss. Therefore, this account book was not produced before the ITO. The ld. D.R. had not much to say against this argument of the assessee's representative who at the time of hearing showed to us all the details relating to the collection from the two cinema houses and offered to get them reconciled with the certificate of the Excise Officer. It was furt....