1990 (9) TMI 337

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..... arnataka Sales Tax Act and the Rules framed thereunder proposing to determine the turnover on best judgment basis having rejected the turnover returned by the assessee. The assessee sent him his reply opposing the proposal. The same is produced along with the writ petition as annexure A . The explanation offered against the proposal was rejected by the officer and he proceeded to assess the taxable turnover of the assessee under section 5 as well as section 6 as he was carrying on a composite business of running restaurant as well as coffee products sales depot. Aggrieved by such assessment based on best judgment, he filed an appeal before the Deputy Commissioner of Commercial Taxes. The appeal came to be dismissed. Further appeal prefer .....

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..... ifferent set of facts. Assessee was clearly informed that he had not maintained proper accounts, that he had not adhered to the normal pattern of issuing demands in both original and duplicate, he had not entered many purchases of commodities used in the hotel business in the relevant register. It was in that circumstance that the establishment of the assessee was visited by the Commercial Tax Officer along with the officer of the intelligence section and on such dates of inspection, stocks were verified and the stock purchased at subsequent date with reference to the stock found at an earlier date was taken notice of as the possible consumption in the running of the business of the restaurant and on that basis annual consumption of the com .....

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..... .. In that view of the matter, the decision relied upon by the learned counsel in Narayanappa s case [1962] 13 STC 993 (Mys) is against him. Therefore, we must reject the contention that there has been any irregularity in the method adopted by the assessing authority in as much as the consumption of various items of food grains and other commodities used in the restaurant business in a given period would certainly form a rational basis to determine the possible turnover of that establishment. 7.. It was next brought to our notice that certain additions made by the assessing authority in the sum of Rs. 1,000 was not justified having regard to the decision of this Court in the case of A.G. Inamdar v. State of Karnataka disposed of on 2nd da .....

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