1962 (12) TMI 38

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....ee on the basis of the assessment year under section 7(1) read with rule 39(1) was legally valid? (2) Whether on the facts and in the circumstances of the case, the assessment of the assessee on the basis of the assessment year is valid on the ground that he had not carried on business for all twelve months during the year 1953-54? The respondent, Messrs Asha Ram Sushil Chandra, is a dealer in kirana and medicines at Baraut in the district of Meerut. It commenced its business on 6th November, 1953. The Sales Tax Officer assessed it for the assessment year 1953-54 in accordance with the provisions of section 18(3) of the aforesaid Act. For the assessment year 1954-55, the Sales Tax Officer made an assessment order on 30th November, 195....

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....ded that the view taken by the judge (Revisions) to the effect that the proviso to rule 39(1) is ultra vires is erroneous. We have considered the matter and are inclined to accept his contention. It is necessary for the purpose of appreciating his contention to consider the statutory provisions as they stood at the relevant time. Section 3, sub-section (1) of the Act charges a dealer to sales tax on his turnover of the previous year, and sub-section (2) empowers the State Government to prescribe that the dealer could, instead of paying tax on the turnover of the previous year, pay the same on the turnover of the assessment year. Section 7, sub-section (1), requires the dealer to submit a return or returns of his turnover of the previous yea....