Second-sale exemption depends on reliable transaction records; remand upheld where verification and supporting findings were lacking.

A claim for second-sale exemption must be supported by reliable transaction records and clear supporting findings. Here, the assessees relied on a subsequent-lease or second-sale character to avoid tax, but the record lacked satisfactory material and the appellate authority had not clearly explained the exemption basis. The Tribunal found gaps in the assessee's books and supporting documents, held that verification was necessary before granting exemption, and remanded the matter to the Assessing Officer. The remand was upheld, and the tax revisions failed because no substantial question of law arose on the material before the Court.

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Issues: Whether the assessees had established entitlement to second sale exemption and whether the Tribunal was justified in setting aside the appellate order and remanding the matter for fresh verification.

Analysis: The assessees claimed that they were only subsequent lessors and therefore not liable to tax, relying on alleged transactions with another dealer and on a departmental clarification. The record, however, did not contain satisfactory material to support the claimed transaction structure, and the First Appellate Authority had not recorded any clear finding explaining how the assessees were treated as second persons exempt from tax. In contrast, the Tribunal found that the revenue's objections disclosed gaps in the assessee's case, including the absence of proper books and the need to verify the records before granting exemption. On that basis, the Tribunal set aside the appellate order and remanded the matter to the Assessing Officer.

Conclusion: The claim of second sale exemption was not established on the material before the Court, and the Tribunal's order of remand was upheld.

Final Conclusion: The tax case revisions failed, the Tribunal's remand was sustained, and the matter was left for fresh consideration by the Assessing Officer.

Ratio Decidendi: A claim to tax exemption based on a subsequent-lease or second-sale character must be supported by reliable transaction records, and where the appellate findings are unsupported and verification is necessary, remand is justified and no substantial question of law arises.

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