TaxTMI 
TaxTMI 
1980 (1) TMI 178
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....65, the petitioner was assessed to sales tax. In the proceedings some of the petitioner's books were produced, the other books, having been seized by the income-tax department, the petitioner's accounts could not be closed. Under the circumstances, the Commercial Tax Officer rejected the return of the petitioner where the gross turnover was shown to be Rs. 2,08,071.75, and the gross turnover was estimated to the best of his judgment at Rs. 3,00,000. Being aggrieved by the said assessment dated 29th September, 1967, the petitioner preferred an appeal before the Assistant Commissioner of Commercial Taxes and obtained substantial relief. Thereafter, the Commercial Tax Officer-cum-Investigating Officer, Bureau of Investigation, respondent....
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....umra and Ramanlal Phumra, two other partners of the petitioner, under section 14(1) of the Bengal Finance (Sales Tax) Act, 1941, stating, inter alia, as follows: "You are hereby directed under section 14(1) read with section 21A of the Bengal Finance (Sales Tax) Act, 1941, to produce all the relevant records of your personal business since 1st January, 1964, to the date of production on 27th December, 1971, at 11 A.M. before the undersigned positively for examination." The said Narayandas Phumra, Daulal Phumra and Ramanlal Phumra replied to the said notices on 27th December, 1971, stating, inter alia, that they were only the partners of the firm and that some of the books of the petitioner were already in the custody of respondent No.....
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....section 21A of the Bengal Finance (Sales Tax) Act, 1941, to produce all the relevant records of your personal business since 1st January, 1964, to the date of production on 3rd February, 1972, at 11 A.M. before the undersigned positively for examination." Finally, on 28th November, 1972, the Additional Commissioner of Commercial Taxes, West Bengal, issued a notice on the following terms: "To Sri Narayandas Phumra, Partner, and others carrying on business under the trade name of M/s. Ramanlal Madanlal, 56, Burtolla Street, Calcutta. Whereas it is proposed to pass an order to the effect mentioned below, you are hereby informed that if you wish to prefer any objection against such order you should attend either personally or by an aut....
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....n the name of third parties in the petitioner's firm as also in other firms. The income so disclosed related to a period prior to 1961. The disclosures were duly accepted by the Commissioner of Income-tax and a certificate under section 68(7) of the Finance Act, 1965, has been given to the partners and taxes on such disclosures have been paid. The petitioner contends that the said notice dated 28th November, 1972, issued by the Additional Commissioner of Commercial Taxes, West Bengal, is illegal, invalid and inoperative as also without jurisdiction as such disclosure did not constitute valid material for the purpose of assessment or reassessment of sales tax for the period in question. It is further contended that declarations made under....
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....tional Commissioner of Commercial Taxes, West Bengal, dated 28th November, 1972, to refrain from taking any steps thereunder and for setting aside or quashing the same. The application is opposed but no affidavit has been filed on behalf of the respondents controverting the allegations in the petition. The learned Advocate appearing for the petitioner reiterated the contentions in the petition and in support thereof cited a decision of the Supreme Court in Girdhari Lal Nannelal v. Sales Tax Commissioner, M.P.[1977] 39 S.T.C. 30 (S.C.); A.I.R. 1977 S.C. 298. In the case before the Supreme Court the sales tax assessing authority of Madhya Pradesh had added an amount of Rs. 10,000 which had been entered by way of cash credit in the accou....
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....ncome-tax it may in appropriate cases be permissible to treat unexplained acquisition of money by the assessee to be the assessee's income from undisclosed sources and assess him as such. As against that, for the purpose of levy of sales tax it would be necessary not only to show that the source of money has not been explained but also to show the existence of some material to indicate that the acquisition of money by the assessee has resulted from transactions liable to sales tax and not from other sources." The law as settled by the Supreme Court appears to be clear. On a challenge being thrown by a dealer in the instant case, the sales tax authority has not been able to produce any material to justify the notice except the fact that t....