STATE OF MADRAS Vs. LATEEF HAMID AND CO

JUDGEMENT

(1.) This appeal by certificate arises from the decision of the High Court of Madras. It raises two questions for decision viz. (1) whether the High Court was right in its opinion that the Appellate Assistant Commissioner of Commercial Taxes was incompetent to enhance the assessment of the assessee, the respondent herein and (2) whether the High Court was justified in holding that the additional exemptions granted by the Tribunal were justified by the evidence on record.

(2.) There is not merit in the second contention. Therefore it will be convenient to dispose it of even before going to the fact of the case. The assessing officer as well as the Appellate Assistant Commissioner of Commercial Taxes disallowed the two exemptions asked for by the assessee on the ground that there was interpolation in the relative documents covering the turnover. The Tribunal reversed that finding of those authorities and allowed the exemption asked for. It appears from the order of the Tribunal that it proceeded on the basis that there was no interpolation. This finding of the Tribunal is essentially a finding of fact and hence we will not be justified in interfering with that findings and more so as the High Court has declined to interfere with that finding.

(3.) This takes us to the real controversy in the appeal namely whether the Appellate Assistant Commissioner had power to enhance the assessment of the assessee. The assessee is a dealer in Hides and Skins at Madras. We are concerned herein with its assessment for the year 1958-59. That assessment was made on March 24, 1961. By his order dated August 16, 1962, the Appellate Assistant Commissioner enhanced the assessment of the assessee while disposing of the appeal filed by the assessee. Until March 31, 1959, sales tax was being levied on dealers in the State of Madras under the provisions of the Madras Sales Tax Act 1939 (to be hereinafter referred to as the "1939 Act"). The assessee's turnover for the year 1958-59 stood charged with the liability to pay tax as leviable under the 1939 Act. The 1939 Act was repealed by the Madras General Sales Tax Act, 1959 (to be hereinafter referred to as the "1959 Act"). That Act came into force on April 1, 1959. As seen earlier the assessee was assessed after that Act came into force. The assessee filed its appeal under Section 31 of that Act and the Appellate Assistant Commissioner dealt with that appeal under that provision.