STATE OF ANDHRA PRADESH Vs. KINGS PAPER MARX

JUDGEMENT

(1.) THE State is the petitioner in this Tax Revision Case. The respondent -dealer was carrying on the business of paper and Note Books in the assessment year 1981 -82. He claimed that out of the total purchase of paper made by him amounting to Rs. 10.92 lakhs, he purchased paper from out side the State for a sum of Rs. 3.50 lakhs. As the petitioner did not maintain any accounts with reference to the sale and utilisation of the papers, the assessing authority has taken into consideration the total sales and then worked out the ratio to arrive at the first sales. In so working out, it applied that ratio to purchases. That the Tribunal held was not warranted. The Tribunal took the view that the basis adopted by the assessing authority in estimating the first sales in the proportion of purchase from outside the State as well as the purchases within the State being in the ratio of 3:7, he should have splitted the sales turnover in the same proportion; the assessing authority applied that proportion to the purchases of papers effected to arrive at the estimation of first sale. In our view, the principle laid down by the Tribunal in arriving at the estimation of the first sales is correct and reasonable and no exception can be taken to it. We, therefore, find no merit in the T.R.C., it is accordingly dismissed. No costs.