STATE OF KERALA Vs. K E NAINAN

JUDGEMENT

(1.) These two appeals by special leave from the judgment of the High Court of Kerala involve a common question, namely, whether the revisional powers conferred on the Deputy Commissioner of Agricultural Income-tax and Sales Tax under Section 15(1) of the Travancore-Cochin General Sales Tax Act, 1125, hereinafter called the Act, could be exercised in the present case after the expiry of a period of three years mentioned in Rule 33 of the Rules framed under the Act.

(2.) K.E. Nainan, the respondent, was a dealer in provisions at Kallar. The assessment years with which we are concerned in these appeals are 1955-56 and 1956-57. He was also conducting auction sales of cardamom having taken out a licence under Section 9 of the Act. The assessment for the year 1955-56 was completed by the Agricultural Income-tax and Sales Tax Officer on September 5, 1956. His net turnover was determined at Rs. 11,448-14-9 representing the sales of provisions. Exemption was given in respect of the turnover of Rs. 96,515-15-0 of auction sales of cardamom. For the second year, i.e., 1956-57 the turnover of Rs. 2,39,925 was similarly exempted. In granting these exemptions the assessee was given the benefit of the commission licence taken out by him for which he had paid a fee of Rs. 200 and Rs. 400 respectively for the two years in question.

(3.) The Deputy Commissioner of Agricultural Income-tax and Sales Tax on examining the assessment record suo motu was of the opinion that granting of exemption under the licence was not proper, legal or regular because the assessee had not proved that the transactions were on behalf of known principals. In exercise of the powers conferred by Section 15(1) of the Act the Deputy Commissioner cancelled the assessments and remanded the case to the assessing authority for fresh disposal.