BHERODHAN JETHMAL PRIVATE LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE questions referred to this court by the Tribunal under section 24 (1) of the Orissa Sales Tax Act are as follows :

(2.) THE facts relevant to these questions may be stated in short. The petitioner is the owner of a rice mill a Jaleswar in the district of Balasore. The sales tax department raided the business premises of the petitioner and seized certain secreted accounts. It was found from those accounts that the suppression during the relevant nine quarters ending 31st March, 1960 to 31st March, 1962, amounted to Rs. 14,11,354. 67. The Sales Tax Officer held that the suppressions were not exhaustive and accordingly assessed the petitioner to the tune of Rs. 50,00,000 for every year. The Assistant Commissioner of Sales Tax reduced the same to Rs. 84,15,000 for the entire period. The Sales Tax Tribunal reduced the same for the entire period to Rs. 27,00,000.

(3.) MR . Ray on behalf of the petitioner contends that once the department was in possession of the entire secreted accounts which were genuine, correct and exhaustive there was no scope for making further estimates beyond what was found from those accounts. In other words, the secreted accounts were the genuine accounts and once they were before the taxing authorities no further estimate was to be made merely on guess. The contention is well founded and must be accepted.