NANIBALA GHOSH Vs. COMMERCIAL TAX OFFICER HOWRAH

JUDGEMENT

(1.) ONE Dulal Chandra Ghose, since deceased, was the sole proprietor of a business known as "messrs. Dulal Chandra Ghose" and in the said business was a dealer in milk, cooked foods (including salted snacks or nonta-khabar), curd, and Indian sweets made of preparation or products of milk, cereals, pulses and sugar. The said Dulal Chandra Ghose was registered as a dealer under the Bengal Finance (Sales Tax) Act (hereinafter referred to as the 'act') and he used to file quarterly returns under the Act in his said business. During his life-time he had filed returns for the four quarters ending with Ashar, Aswin, Pous and Chaitra 1365 B. S. In the four quarterly returns taken together, the gross turnover was shown at Rs. 1,88,312/34 np. Out of that, deductions, under section 5 (2) (a) (i) of the Act, were claimed at Rs. 1,28,464/55 np. and the taxable turnover was shown at Rs. 59,847/79 np. On the amount of the taxable turnover the said Dulal Chandra Ghose paid a sum of Rs. 2857/70 np. , as admitted sales tax, as he thought, he was required to do under the Act. The assessment, however, was not completed during his lifetime.

(2.) DULAL Chandra Ghose died intestate on May 22, 1960, leaving him surviving his sole widow, Nanibala Ghose (Petitioner No. 1), and his only daughter, Sibani Ghose (petitioner No. 2), as his sole heirs and legal representatives. As between the two petitioners there was a deed of partnership executed and the same trade was restarted by them at the same place under the same trade name. A copy of the partnership deed was filed before the Commercial Tax Officer, Howrah Charge, and the petitioners prayed for fresh registration as dealers in the said partnership business. The prayer was allowed and the partnership was registered as a dealer under the old registration number, HW 1652a.

(3.) THE Commercial Tax Officer doubted the correctness of the quarterly returns for the year 1365 B. S. , filed by Dulal Chandra Ghosh. He, therefore, issued a notice in form VI, under Section 11 and Section 14 (1) of the Act, calling upon the Partnership to produce books of accounts together with any objection which it might wish to prefer and any evidence which it, might wish to adduce in support thereof. The petitioners felt that the returns filed by Dulal Chandra Ghosh and the taxable turnover admitted by him were done through misunderstanding and mistake and they further felt that from out of the gross turnover the entire amount was deductible, under section 5 (2) (a) (i) of the Act, being sale of goods declared tax-free under section 6 of the Act, with the result that the taxable turnover would become nil. The petitioners, therefore, caused revised returns to be filed, in which the amount of gross turnover was shown at Rs. 1,88,349-35 np. and the whole of the said amount was claimed as deduction, under section 5 (2) (a) (i) of the Act. The aforesaid returns were filed under the provisions of section 10 (4) of the Act. In an explanatory statement, also filed before the Commercial Tax Officer, the petitioners showed the break up of the gross turnover in the following manner :- <FRM>JUDGEMENT_49_TLCAL0_1962Html1.htm</FRM>