BHAGWANJIBHAI JAIRAMBHAI Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) BY this petition under Articles 226 and 227 of the Constitution the petitioner requests for issue of a writ of certiorari quashing the orders Ex. P-l, Ex. P-2 and Ex. P-3, which have been passed by the Sales Tax Authorities assessing him to pay sales tax for the period 20th October, 1949, to 9th November, 1950.

(2.) THE petitioner had taken some forest contracts during the assessment period and extracted timber for sale. He furnished a return of the timber sold. The accounts produced by the petitioner with the return were not properly kept and did not sufficiently disclose the sales made. The Sales Tax Officer did not, therefore, accept the return and proceeded to assees according to his "best judgment" as provided in Section 11 (4) of the Sales Tax Act. He held that the sales during the assessment period amounted to Rs. 4,50,000 and ordered the dealer to pay tax amounting to Rs. 11,371-14-0 only (Ex. P-l ). The petitioner went up in appeal and the Assistant Commissioner of Sales Tax reduced the turnover to rupees four lacs (Ex. P-2 ). The Commissioner of Sales Tax refused to interfere with the order (Ex. P-3 ).

(3.) THE Sales Tax Officer had obtained a report from the Sales Tax Inspector and learnt from it that the petitioner had held "many more contracts than what has been actually stated by him". It appears that the petitioner had denied that he had taken any more thekas; but this was not believed. Further, considering the fact that the dealings of the petitioner were estimated by the Income-tax Authorities at- Rs. 3,25,000 and also comparing his business with other leading merchants, the Sales Tax Officer concluded that the dealings were to the tune of rupees four and a half lacs. The Assistant Commissioner took into consideration the fact that the petitioner was satisfied with the assessment of the income by the Income-tax Authorities at Rs. 3,25,000 and so his income must have been more than that sum. He reduced the turnover to four lacs for no particular reasons.