S K KALANJI Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) This is a revision petition by an assessee under S.23(1) of the Mysore Sales Tax Act, 1957, hereinafter called the Act.

(2.) The assessee carries on the business of a restaurant called 'Vinayaka Restaurant' at Haveri. and therefore, he is a dealer under the Act. For the assessment year 1966-67, he declared a taxable turnover of Rs.15,028. In supnort of that return, he produced books of account before the assessing authority. After scrutiny, the assessing authority rejected the accounts and made an order of assessment on best of judgment basis and in determining the taxable turnover of the assesse, he applied the usual formula of computing the turnover by multiplying the working expenses of a hotel by five. In other words, the assessing authority computed the total working expenses of the assessee for the relevant year at Rs.5.377, which he multiplied by 5 and thus arrived at Rs.26.855, on the taxable turnover. On the said basis an assessment was made on 29-2-1968.

(3.) The assessment thus concluded was re-opened by the assessing authority in the exercise of bis powers under S.12A of the Act on the ground that a turnover of Rs.7.210 had escaped assessment. The said sum of Rs.7,210 was stated to be the amount received bv the assessee for supply of refreshments to the NCC Cadets attached to Gudleppa Hilikeri College, Haveri. The assessee contended, inter alia, that the said supply of refreshments was made bv his brother and not by him. That contention was negatived by the assessing authority. After rejecting the contention of the assessee, he added the sum of Rs.7.210 to the taxable turnover of Rs.26.855 originally determined and levied tax on the turnover alleged to have escaped assessment. He further levied a penalty of Rs.216. The assessee's appeal to the Assistant Commissioner of Commercial Taxes, Belgaum Division-I, Dharwar, was dismissed on 30-1-1970 and that order was affirmed bt the Mysore Sales Tax Appellate Tribunal, Bangalore, in STA.No.299/70.