TMI Blog1977 (4) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ies 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 assessment the assessee disclosed a total investment of Rs. 2,36,600 for manufacture of Gudakhu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 being a dealer maintained purchases and sales accounts. Obviously they were thoroughly scrutinised. Bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 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, the above principles are applicable. The forums below have not assigned valid reasons for rejectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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