MANORDAS KALIDAS Vs. COMMISSIONER OF SALES TAX BOMBAY

JUDGEMENT

(1.) Both these references, which raise a common question, will be disposed of by this order. The common question referred to us is as follows :

(2.) The applicants are dealers in artificial silk and other products. The two periods with which the two references are concerned are :

(3.) Originally, the assessments in respect of each of these two periods were completed by assessment orders dated 4th May, 1951, in the case of the earlier period and 26th February, 1954, in the case of the second period. It appears that in the case of the applicants in income-tax proceedings, the Income-tax Officer passed an assessment order for the assessment year 1951-52 (Samvat Year 2005) on 28th March, 1956. Thereafter the Assistant Collector of Sales Tax issued two notices to the applicants on 13th June, 1958, purporting to act under section 31 of the Bombay Sales Tax Act, 1953. One notice was in respect of the first period and the other was in respect of the second period covered by these two references. In both these notices, it was alleged that the applicants had suppressed sales to the tune of Rs. 20,00,000 from regular books of account for each of the two years 1948-49 and 1950-52 respectively, and therefore, it was proposed to revise the orders passed by the Sales Tax Officer for the said years by incorporating and adding sales to the extent of Rs. 20.00,000 to the turnover for each of these years and to subject the sales to tax at the rate of one anon in a rupee. Along with the notices, the Assistant Collector sent a letter of even date in which reference was made to certain portion from the order of the Income-tax Officer on the basis of which apparently the notices were issued. It is not now disputed that in both these notices the Assistant Collector purported to bring to charge the escaped turnover in respect of each assessment period.