1969 (12) TMI 95

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....f a hotel by name "Ashok Hotel" in Hubli town. With regard to the assessment year 1966-67, he returned the sales turnover of Rs. 1,56,704. The Commercial Tax Officer did not accept the turnover on various grounds. He rejected the accounts in this regard on six grounds enumerated in the assessment order, and then made an assessment to the best of judgment determining the turnover at Rs. 2,20,000. O....

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....were serving only hundred meals per session. He was also of the opinion that the margin of profit was very low and it was shown to be only 18 per cent. There is also a reference regarding the passengers from Mangalore to Bombay by road taking their meals in the hotel. It is clear from these reasons that the assessing authority has depended mostly on the working rule of 1 1/2 times of the purchase ....

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.... noted in the accounts. In other words, once such accounts are accepted, it is not open to the authority to reject them on the ground that certain purchases were not supported by vouchers and that the quantum of sales fell below the test prescribed by the working rule mentioned above. 4.. For the above reasons, the authorities were not justified in rejecting the sales turnover returned by the a....