1978 (5) TMI 116 - HC - VAT and Sales Tax

Summary

Issues involved: Valid rejection of accounts books of the assessee.

Summary:
The High Court of Allahabad, in the case before them, considered the question of whether the accounts books of the assessee were validly rejected. The revising authority had rejected the accounts books citing reasons such as sales being recorded after counting the till, absence of separate cash memos for retail sales, and discrepancies in turnover versions. However, it was noted that there was no concrete evidence to support these findings, and the assessing and appellate authorities did not provide any backing for the rejection. The only issue highlighted was the absence of separate cash memos for retail sales, which the assessee explained as a practice of passing a consolidated cash memo for all petty sales at the end of the day to reconcile with the books of account. The court found this practice reasonable and not indicative of any malpractice to evade taxes. Consequently, the rejection of the accounts books was deemed unjustified, and the question was answered in the negative in favor of the assessee. The assessee was awarded costs amounting to Rs. 200.