1973 (7) TMI 91

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....ified. The assessee, who is running a coffee hotel, reported a taxable turnover of Rs. 7,19,025.09 for the assessment year 1964-65. The assessing authority did not accept the correctness of the accounts and added 20 per cent to the book turnover and this resulted on a turnover of Rs. 1,43,814.64 being added to the reported turnover. There was an appeal to the Appellate Assistant Commissioner, but ....

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...., proceeded to estimate the assessee's sales turnover by adding 50 per cent to the purchase turnover of the assessee. The assessee questions the view taken by the Tribunal before us. According to the learned counsel, the Tribunal having found that it is neither obligatory nor practicable to issue pay-in-slips for all transactions, it should have accepted the turnover as per the books without maki....

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....ooks should be rejected, except the reason that the gross profit is low. If the Tribunal has indicated any reason as to why the account books cannot be accepted, then the estimate of the taxable turnover made by the Tribunal cannot be taken exception to, as the normal gross profit rate can be taken as one of the relevant considerations for estimating the actual sales turnover. But, in this case, t....

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....e that there was any suppression. The Tribunal, therefore, refused to sustain the estimate made by the authorities in that year unless there were serious defects pointing out purchases or sales suppressions and stated that the low gross profit margin alone cannot be taken to reject the accounts. In this year, the assessee's accounts have shown a gross profit rate of 39 per cent as against 38 per c....