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TMI Blog1983 (4) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... e agreement basis and when that car as sold was being used by the appellant for business purposes?" 2.. The material facts giving rise to this reference briefly are as follows: The assessee carries on business of financing hire-purchase transactions in motor vehicles. While framing assessment for the assessment year 1970-71, the assessing authority found that the assessee had sold a car for Rs. 40,000. The assessing authority held that this amount was liable to be included in the taxable turnover of the assessee. In the appeal preferred by the assessee before the Appellate Assistant Commissioner, the finding of the assessing authority was affirmed. In the second appeal before the Board, the Board held that the assessee was not a dealer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld by the assessee was not used as ancillary to the assessee's business. In the instant case, however, the contention of the assessee before the Tribunal was that the car in question was for the office use of the assessee and that its sale proceeds were not exigible to tax as the assessee was not a dealer in cars. That is why in the question referred to this Court it is stated that the car was used by the assessee for business purposes and we must, therefore, proceed on the basis that the finding of the Tribunal is that the car was used by the assessee for business purposes. In Misc. Civil Case No. 129 of 1981. (Commissioner of Sales Tax v. Ratlam Strawboard Mills Private Ltd., Ratlam [1984] 55 STC 194) we have held that in view of the enla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... car can be included in the assessee's turnover. The finding recorded by the Tribunal is that the car was not used as ancillary to the assessee's business. The department's case that the car was used for transporting the commodities in which the assessee carried on business was not found to be correct. All that was found was that the car was used for the conveyance of the partners. The law on this point has been stated by this Court in Commissioner of Sales Tax v. Project Automobiles [1978] 42 STC 279. It was held in that case that sale of a motor car which was not only incidental but also ancillary to and connected with the business carried on by the assessee was taxable as it came within the definition of the word "business". In the insta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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