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TMI Blog1970 (8) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... stock amounting to Rs. 2,85,773 to Jullundur branch of the dealer could be legally regarded as inter-State sale? (3) Whether the material found on record supports the fixation of the turnover in the case of U.P. sales at Rs. 12,60,000." In respect of the assessment year 1964-65 which is the assessment year in dispute, the assessee disclosed a turnover of Rs. 11,10,017 in its returns filed under the U.P. Sales Tax Act. Likewise it disclosed a turnover of Rs. 26,10,990 of inter-State sales in its returns filed under the Central Sales Tax Act. The books of accounts produced by the assessee in support of its returns were rejected and the Sales Tax Officer estimated the U.P. sales at Rs. 15,00,000. On appeal the Assistant Commissioner (judi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that question No. (1) has not been properly framed. Whether in a particular case the account books should be accepted or rejected is essentially a question of fact and does not give rise to any question of law. The only question that can arise in such a case is whether there was any material for rejecting the assessee's accounts. We accordingly reframe the question to read: "Whether the rejection of the assessee's books of accounts is supported by any material on the record?" It appears that the Sales Tax Officer had rejected the accounts on several grounds some of which did not find favour with the judge (Revisions). He, however found the assessee's books of accounts liable to rejection on the following grounds: (i) That t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... register contemplated by this rule 72(2) is a stock register which should contain particulars of day to day consumption of each raw material and of the finished products at different stages. The overall stock register of the kind produced by the assessee could not be said to be in conformity with the requirements of the rule. The defect in the stock register coupled with the other two defects pointed out by the judge (Revisions) in our opinion constituted good material for rejecting the assessee's account books. We, therefore, answer question No. (1) as reframed by us in the affirmative in favour of the department and against the assessee. Coming now to question No. (2), it appears that the Sales Tax Officer treated the sum of Rs. 2,85,773 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the head office and the branch. We are accordingly of the opinion that there was no material for holding that the sum of Rs. 2,85,773 represented the turnover of inter-State sales. We accordingly answer question No. (2) in the negative in favour of the assessee and against the department. Coming now to question No. (3), it appears that the assessee had shown its turnover of U.P. sales at Rs. 11,00,000 and odd which was enhanced by the Sales Tax Officer to Rs. 15,00,000, but was reduced to Rs. 12,60,000 by the judge (Revisions). Thus there was an enhancement of Rs. 1,60,000. The Judge (Revisions) has arrived at a figure of enhancement on the ground that enhancement should be in the same proportion as the enhancement in the turnover of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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