1980 (10) TMI 209 - HC - VAT and Sales Tax

Summary

Issues:
Assessment of taxable turnover based on rejected accounts.

Analysis:
The judgment pertains to a revision under section 11(1) of the U.P. Sales Tax Act for the assessment year 1973-74. The assessee, engaged in the business of foodgrains, oilseeds, and Kirana, disclosed a turnover of purchases and sales. However, the Assessing Officer rejected the accounts and determined the taxable turnover at a higher amount. Subsequently, on appeal, the taxable turnover was reduced. The assessee then filed a further revision challenging the revised taxable turnover.

The revising authority confirmed the rejection of accounts but reduced the taxable turnover further. The court noted that the rejection of accounts was primarily based on a survey that revealed discrepancies in the cash box and unrecorded entries in the Dalal Bahi. The explanation provided by the assessee regarding these discrepancies was partially accepted, but the revising authority failed to provide a clear finding on the satisfactory nature of the explanation. Additionally, the failure to record 100 bags of wheat in the stock register was highlighted, with the assessee justifying the omission due to immediate sales upon receipt.

Furthermore, the court addressed the issue of selling wheat without issuing cash memos. While the revising authority accepted the explanation for this practice, the court emphasized the legal significance of issuing cash memos as per the provisions of the Act. Citing previous judgments, the court held that non-compliance with section 8-A(3) could justify the rejection of accounts. Therefore, the court allowed the revision, set aside the revising authority's order, and remanded the case for a fresh decision considering all aspects in accordance with the law.