A P PYARELAL Vs. STATE OF MADRAS

JUDGEMENT

(1.) THESE revisions arise out of a common order passed by the Tribunal in the three appeals preferred by the assessee one A.P. Pyarelal against the orders of assessment relating to the assessment years 1956-57, 1957-58 and 1958-59. The assessee is running a hotel styled as Bombay Ananda Bhavan Hotel at Karaikudi. He is also doing a business in coffee powder under the name of Ananda Manufacturing Company with its head office at Karaikudi and branches at Madurai, Dindigul, Tirunelveli, Sivagangai and Madras. The turnover in respect of the coffee powder business is not in dispute and we are not therefore concerned with the turnover of that business. Originally the assessee submitted his return in respect of his coffee hotel business for 1956-57. The Deputy Commercial Tax Officer, Karaikudi, determined the net taxable turnover to the best of his judgment at Rs. 3, 00, 359. The assessee preferred appeals to the appellate authorities and finally when the matter came up to this Court in revision (T.C. No. 58 of 1959) this Court observed :

(2.) "In the case of Pyarelal (assessee) the position was that in the assessment year the Income-tax Department substantially accepted his books as correct but made an addition of Rs. 3, 000 to allow for possible leakages from the till. The Income-tax Department did not find that there had been any suppression of sales or inflation of purchases. From the statement produced before us, it appears that in 1956-57 the gross profit returned was 17.5 whereas in the earlier years it was slightly more. But at no time did it come anywhere never 50 per cent., the basis on which the turnover was estimated in the case of Pyarelal. Whether the accepted turnover of the previous year and the gross profits disclosed therein afforded a better basis for estimating the turnover in the year of assessment 1956-57 will be for the Tribunal to determine."

(3.) IN additional he maintains tiffin section bill book register, allocation book, milk account books, cash bill books and stall account books. Thus the assessee maintains account books for the meals section, restaurant section and also the stall section. The department has accepted the account books of the assessee in respect of the meals and tiffin sections. But it is only with regard to the account books maintained for the stall section that the department is not satisfied with the accounts on the ground that the assessee is not in the habit of giving sale chits to the customers when they make purchases at the stall. But, as pointed out already, the assessee maintains a stall account book which is maintained regularly in the ordinary and usual course of business of the assessee. This book records the daily issues of sweetmeats and savouries to the stall, the unsold sweetmeats and savouries returned from the stall at the close of the day, the quantity of sweetmeats and savouries sold on that day, their respective values and the total of the amount of sweetmeats and savouries sold and the actual cash collections in the till at the close of the day from the stall. This book was maintained during the years 1957-58 and 1958-59. The total sales from this book are taken to the allocation book from where they are taken to the daybook and posted to the sales account in the ledger.