TaxTMI 
TaxTMI 
1995 (10) TMI 217
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.... of account of the assessee inspite of the fact that the sales disclosed were lower than the cost of the goods worked out at Kanpur depot and the depot had no authority to sell the goods at a price below the minimum prescribed by the head office?" The opposite party assessee is a public limited company and has its head office at Porbandar, Gujarat. During the assessment year 1982-83 the assessee carried on business in sale of soda, soda caustic and soda bi-carb, etc., which it received from its head office. The account books of the assessee were rejected primarily on the ground that the total sale price charged from the customers, which had been shown as sales turnover, was less than the value of the goods calculated at the rate on which....
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....o be false or wrong. In the circumstances, we are of the opinion that the account books of the dealer could not be rejected merely on the ground that excess discount has been allowed by the dealer. The account books are duly audited. Further, the head office also exercises control over the local sale office. There is no adverse survey. The book figures are accordingly accepted." The contention of the learned standing counsel that the goods could not have been sold below the cost or for a price less than on which the goods were transferred from the head office, has no substance. It was not disputed that the assessee had maintained regular account books which were produced before the assessing authority for their scrutiny during the cou....
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....y dealers. Sub-section (1) of that provision says that every dealer including a dealer exempted from tax on payment of fee under any provisions of the Act, shall keep and maintain a true and correct account showing the value of the goods sold and bought by him, and in case the accounts maintained in the ordinary course do not show the same in an intelligible form, he shall maintain true and correct account in such form as may be prescribed in this behalf. The proviso attached to that sub-section exempts the dealers from maintaining the accounts who are not liable to taxation under the Act. Subsection (2) of section 12 provides for maintenance of an additional accounts in case of a manufacturer. It says that a manufacturer liable to pay tax ....
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.... of Kerala [1970] 25 STC 497; [1970] 76 ITR 365, a division Bench of the Kerala High Court held as under: "Accounts regularly maintained in the course of business have to be taken as correct unless there are strong and sufficient reasons to indicate that they are unreliable. The department has to prove satisfactorily that the account books are unreliable, incorrect or incomplete before it can reject the accounts. The rejection of accounts should not be done light-heartedly. Though it may not be possible to lay down the exact circumstances in which the accounts should be rejected as unreliable or incorrect, the accounts may be rejected as unreliable if important transactions are omitted therefrom or if proper particulars and vouchers are ....