1976 (1) TMI 61 - AT - Income Tax

Summary

The appeal by Tvl Madurai Muniyandi Vilas Hotel was related to a turnover discrepancy of Rs. 34,834-10 reported by the appellant but determined at Rs. 52,251-15 by the D.C.T.O. due to accounting defects. The Assessing Officer made a 50% addition to the turnover, which was upheld by the Appellate Asst. Commissioner. The appellant's contention as a s. 7 assessee was rejected due to insufficient records. An inspection report was considered in fixing the addition, leading to a final turnover assessment of Rs. 39,000 per year. As the turnover fell below the taxable minimum, the assessment for 1974-75 was cancelled, and the appeal was allowed.