Sales-return deduction must relate back to the original assessment year, not the later year of return and refund.

The statutory deduction for goods returned by purchasers under rule 6(1)(b)(i) had to be read with rules 50(4) and 50(5), which provide for revision of the assessment and consequential refund within the prescribed time. On that combined reading, the deduction, adjustment, or refund was treated as relating back to the financial year in which the original sales were effected, not the later year in which the goods were returned and refunded, if the prescribed conditions were met. The assessee therefore could not claim the sales-return deduction in the subsequent assessment year, and the Tribunal's contrary view was held erroneous.

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Issues: Whether the value of goods returned by purchasers could be deducted from taxable turnover in the assessment year in which the goods were returned, or whether such deduction had to be claimed in the year in which the original sale was taxed.

Analysis: Rule 6(1)(b)(i) permits deduction of amounts allowed to purchasers for goods returned, but it does not by itself specify the year in which the claim must be made. The Court read this provision with rule 50(4) and rule 50(5), which allow revision of the assessment order for a claim relating to returned goods within the prescribed time and provide for refund as a consequence of such deduction. On that combined reading, the statutory scheme shows that the deduction, adjustment, or refund must relate back to the financial year in which the sales were effected, and not to the subsequent year in which the goods were returned and the refund was made, provided the prescribed conditions are satisfied.

Conclusion: The assessee was not entitled to claim the sales-return deduction in the subsequent assessment year; the Tribunal's view was erroneous and the revision succeeded in favour of the Revenue.

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