9911796707
TMI Blog1970 (2) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... , Sachidananda Acharya G.K. Mishra, C.J. 1. The question referred to this court under Section 24(1) of the Orissa Sales Tax Act runs thus:- Whether the Tribunal is justified in rejecting the books of account merely on the ground of low percentage of profit when the accounts otherwise have no defects ? The account books were rejected by the Assistant Commissioner of Sales Tax on three grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew taken by the Tribunal is shocking to commonsense. When account books are produced, it is for the taxing authority to give valid reasons for declaring them to be either false or to be not maintained properly. Whether the margin of profit is high or low would depend on very many circumstances. It may be that there are many competitors in the market and the dealer wants to retain the market by ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the account books. We respectfully agree with the aforesaid observation. 4. The matter would be clear if we keep in view the observations of the Supreme Court in Commissioner of Income Tax v. A. Raman & Co In that case, their Lordships expressed their views as to whether an assessee can resort to evasion of tax by a contrivance or subterfuge. They observed thus : But the law does not oblige a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the device depends not upon considerations of morality, but on the operation of the Income Tax Act. Legislative injunction in taxing statutes may not, except on peril of penalty, be violated, but it may lawfully be circumvented. The aforesaid passage throws no light directly on the question in issue, but the juristic principle underlying this dictum would be a guide to come to a conclusion whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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