MALPANI BROTHERS Vs. STATE OF BIHAR

JUDGEMENT

(1.) These two references have been heard together and they are being disposed of by this common judgment.

(2.) At the instance of the dealer, the Commercial Taxes Tribunal, Bihar, Patna, has stated the case and made these two references under Section 33(1) of the Bihar Sales Tax Act, 1959 (hereinafter to be called "the Act"), for the decision of the following question of law: Whether, in the facts and circumstances of the case, the rejection of the applicant's claim for deducting the sums of Rs. 27,235 and Rs. 46,070 from the gross turnovers of the respective years 1963-64 and 1964-65 on account of sales tax to compute the taxable turnover under Section 7 of the Bihar Sales Tax Act, 1959, is legal and valid ?

(3.) The dealer returned gross turnovers of Rs. 9,59,812 and Rs. 15,66,411 for the periods 1963-64 and 1964-65. The assessing officer found that the dealer had deducted Rs. 27,235 and Rs. 46,070 during the two years in question on account of sales tax realised from the customers though the cash memos and bills did not indicate that such amounts towards sales tax had been realised from the customers in addition to the sale price of the goods. The dealer took the stand that for the purpose of taxation sales tax even though not separately realised by him can be deducted from the gross turnovers by a pro forma calculation for the purpose of working out the taxable turnover. The assessing officer rejected the contention of the dealer and added the two amounts in the taxable turnovers by his orders of assessment dated 29th April, 1966, and 27th June, 1966. The dealer then filed two appeals against the orders of assessment, but those appeals were dismissed by the learned Deputy Commissioner. The dealer then filed applications in revision before the Tribunal. One of the points raised before the Tribunal was, whether the assessing officer was justified in adding the two amounts for the two years which represented the amounts of sales tax as calculated by the dealer on the sale price charged from his customers.