PAHAR CHAND AND SONS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) AT the instance of the assessee this court directed the Sales Tax Tribunal under Section 22 (3) of the Punjab' General Sales Tax Act to state the following question of law for the opinion of this court: Whether, in the circumstances of the case and on the evidence, the finding that the disputed sales were not deductible from the petitioner's taxable turnover, is legally unjustified ?

(2.) WHEN the reference was made we directed the Tribunal by our order dated 12th January, 1970, passed under Section 23 (4) of the Act to make a proper statement of the case. This has been done.

(3.) THE assessment year in question is 1952-53. The assessee is the firm Messrs. Pahar Chand and Sons, a registered dealer under the Act. The firm is dealing in vegetable ghee and cloth. It submitted all the four quarterly returns for the assessment year in question and disclosed its gross turnover at Rs. 4,65,865-3-0. It claimed deductions in respect of sales made to registered dealers amounting to Rs. 3,72,903-11-6 under Section 5 (2) (a) (ii) and Rs. 22,464-4-0 under Section 5 (2) (a) (v) of the Act. An amount of Rs. 2,203 was voluntarily deposited as sales tax. The assessing authority issued a notice in form S. T. XIV to the dealer on 4th December, 1954. On behalf of the assessee, Shri Pahar Chand's statement was recorded by the assessing authority on 28th November, 1955, which revealed that inter-State sales amounting to Rs. 22,464-4-0 had been made by the applicant-firm to the following dealers: 1. M/s. Amir Chand Faquir Chand, Rs. 5,088 Aut, Himachal Pradesh. 2. M/s. Ram Singh Jaswant Singh, Rs. 8,751-4-0 Phagwara. 3. M/s. Gurpal Singh Jaswant Singh, Rs. 8,625 Phagwara.