Unexplained income-tax surrender cannot alone justify sales tax assessment; writ relief was refused due to alternative statutory remedy.

An unexplained surrender before income-tax authorities cannot, by itself, support a sales tax addition unless there is material linking the amount to transactions liable to sales tax; on that basis, remand for fresh examination by the Assessing Authority after giving the assessee an opportunity was justified. The Court also held that a writ petition was not maintainable where a statutory appeal or revision to the High Court was available against the Tribunal's order, and no exceptional ground for bypassing that remedy was shown. The Tribunal's direction for fresh assessment was therefore left undisturbed.

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Issues: (i) Whether surrender of stock or income before the income-tax authorities could, by itself, form the sole basis for making a sales tax addition and assessment; (ii) whether the writ petition was maintainable despite the statutory appellate or revisional remedy against the Tribunal's order.

Issue (i): Whether surrender of stock or income before the income-tax authorities could, by itself, form the sole basis for making a sales tax addition and assessment.

Analysis: The Court relied on the principle that an unexplained surrender or acquisition of money for income-tax purposes does not automatically translate into taxable sales transactions for sales tax purposes. For sales tax liability, it must be shown not only that the source of money has not been explained, but also that there is material indicating that the amount arose from transactions liable to sales tax. On that footing, the Tribunal's view that the matter required reconsideration by the Assessing Authority after giving the assessee an opportunity was upheld.

Conclusion: The surrender before the income-tax authorities could not, by itself, be treated as the sole basis for final sales tax assessment, and the remand for fresh examination was justified.

Issue (ii): Whether the writ petition was maintainable despite the statutory appellate or revisional remedy against the Tribunal's order.

Analysis: The Court noted the existence of a specific statutory provision providing appeal or revision to the High Court against orders of the Tribunal. In the presence of such an alternative remedy, no ground was shown to invoke writ jurisdiction against the Tribunal's remand order.

Conclusion: The writ petition was not maintainable in view of the alternative statutory remedy.

Final Conclusion: The Tribunal's direction for fresh assessment was left undisturbed, and the challenge to it failed.

Ratio Decidendi: A surrender before income-tax authorities cannot, without supporting material connecting it to taxable sales transactions, be the sole basis for sales tax assessment; where a statutory appellate or revisional remedy exists, writ interference is unwarranted absent exceptional grounds.

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