TMI Blog1973 (8) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... of utensils at Mirzapur and making a best judgment assessment? (3) Whether even assuming that account books suffer from technical defects, there was any material for enhancement of the applicant's turnover from Rs. 2,52,796.71 to the round figure of Rs. 2,60,000 or that of utensils from Rs. 43,375.34 to Rs. 50,579.03?" The three questions referred by the revising authority and reproduced above are those which were suggested by the assessee in his application under section 11(4) of the Act. But this court by its order dated 16th April, 1971, called for a reference on the following question only: "Whether, on the facts and in the circumstances of the case, there was any material for enhancing the assessee's turnover from Rs. 2,52,796.7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intain the manufacturing account as required by rule 72(1) was only of a technical nature, inasmuch as a book called 'mahanti bahi' maintained by the assessee corresponded more or less to the manufacturing account. He also upheld the assessee's contention that he was not liable to any tax in respect of the business done by him as a commission agent. He accordingly deleted all the additions made by the Sales Tax Officer and accepted the assessee's return. The Commissioner of Sales Tax went up in revision. Sri Basudeo Lal Srivastava, Additional Revising Authority, Sales Tax, Varanasi, upheld the assessee's claim with regard to the business of commission agency on which no sales tax was payable. He, however, passed a curious order relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 2,01,462.46 must also be covering the profit. I think in such circumstances and the fact that the account books suffer from technical defects only and the turnover of aluminium scraps had been accepted, the turnover of Rs. 2,52,796.71 could at the most be enhanced to Rs. 2,60,000 in a round figure and the amount of excess of Rs. 2,52,796.71 should be added in the turnover of utensils shown at Rs. 43,375.34". Rule 72 of the U.P. Sales Tax Rules prescribes the manner In which accounts should be maintained. It reads: "72. Accounts how to be maintained.-(1) Every dealer liable to pay tax under the Act, and every person licensed under section 3-E shall maintain a true and correct account of all his purchases, sales and stocks showing quant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances to show that the assessee has not correctly recorded his turnover, rule 72 may be pressed into aid to reject the accounts and to make proper estimate of the turnover. But, in the absence of a finding that the accounts are defective and the turnover has not been correctly recorded, mere non-compliance of rule 72 will not lead to the inevitable consequence of the rejection of accounts and enhancement of the turnover. There is no provision in the Sales Tax Act which requires the accounts to be maintained in a prescribed manner. Indeed, rule 72 itself does not say that if it is not complied with, the accounts shall be rejected and a best judgment assessment will be made. In the instant case, the revising authority has recorded a cat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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