1971 (8) TMI 185

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....he U.P. Sales Tax Act, 1948 (to be hereinafter referred to as the Act). The two questions referred for the opinion of the High Court are: "1. Whether a dealer can elect assessment year basis from previous year basis under rule 39 in a case in which section 18(4) applies warranting assessment on previous year basis. 2.. Whether the election so made and the resultant original assessment on assessment year basis would operate as a bar warranting the subsequent assessment to be completed on assessment year basis." The assessee was a dealer in imported vanaspati oil and kirana. It started its business in the year 1952-53 but in that year it carried on business only for a part of the year. In respect of its turnover for that year, the assessme....

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.... questions mentioned earlier for the decision of the High Court. The reference was first heard by a Division Bench of the Allahabad High Court consisting of Manchanda and Beg, JJ. Manchanda, J., answered those questions in favour of the assessee whereas Beg, J., answered those questions against the assessee. Thereafter the matter was placed before Oak, J., who agreed with the view taken by Manchanda, J. The provisions of the Act which are relevant for our present purpose are sections 3, 7 and 18. In addition to these provisions, we must also read rule 39 of the Rules framed under the Act. The aforementioned provisions to the extent relevant for our present purpose may now be read: Section 3 which deals with the liability to tax says: "Su....

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....1,000 shall give notice of the fact to the assessing authority within fifteen days of such commencement and shall submit monthly statements of his turnover within seven days of the expiry of each month in such form and verified in such manner as may be prescribed in respect of the portion of such year during which the business is continued.   (b) If the assessing authority, after making such enquiry as he considers necessary, is satisfied that such returns submitted under clause (a) are correct and complete and that the average monthly turnover is not less than Rs. 1,000 he shall assess the dealer on the total turnover shown in the returns..... (4) The assessing authority shall fix the turnover of the dealer for the next succeeding a....