VEENA THEATRE PATNA Vs. STATE OF BIHAR

JUDGEMENT

(1.) This appeal by certificate under Article 133 (1) (a) of the Constitution arises from the decision of the High Court of Judicature at Patna dismissing the appellant's writ petition under Arts. 226 and 227 of the Constitution. In that writ petition, the appellant asked the High Court to quash the entertainment tax of Rs. 67,500 levied on it for the period from 1-4-1959 to 30-9-1959. The High Court rejected that prayer.

(2.) The appellant is the owner of 'Veena Cinema' in the town of Patna. As required by the provisions of the Bihar Entertainment Tax Act, 1948 (Bihar Act XXXV of 1948) (to be hereinafter referred to as the Act) and the rules framed thereunder, for the period 1-4-1959 to 30-9-1959, the appellant submitted a return showing a tax liability of Rs. 36,860. It deposited that amount. But the Additional Superintendent, Commercial Taxes Patna rejected its return and assessed it on the basis of best judgment and levied a tax of Rs. 67,500 on it for the period in question. The appellant unsuccessfully appealed to the Appellate Assistant Commissioner, Commercial Taxes and thereafter took up the matter in revision before the Deputy Commissioner of Commercial Taxes. That officer made some minor modification in the assessment order; but he substantially upheld the order of the Additional Superintendent. Aggrieved by that order, the appellant took up the matter to the High Court as mentioned above.

(3.) Before the High Court as well as this Court the appellant raised four questions of law namely (1) Rule 28 (4) of the rules is beyond the rule-making power conferred on the State Government under S. 21 of the Act; (2) No power is given either under the provisions of the Act or under the rules to assess on the basis of best judgment; (3) Rule 28 (4) is repugnant to Section 9 (2) of the Act and (4) The assessing authority had arbitrarily fixed the assessee's receipts.