They also had paid in that year Rs.
The sales tax actually recovered by the tax authorities was debited when paid and amounts if any refunded were credited when received.
Purchases and sales of goods on credit were duly entered in the books of account.
tional levy.
demand.
After giving credit for Rs.
Under this system, tax was provisionally assessed by the Sales Tax Officer on the basis of the turnover of the previous year, and thereafter the liability was adjusted at the end of the year of account in the light of the actual turnover of that year, and of rebate allowed in respect of groundnuts pressed into oil.
Appeal from the judgment and order dated February 21, 1956, of the Andhra Pradesh High Court in Case Reference No.
demand.
Official Provi Filial Adjustment Year sional Refund Addi ended.
The assessees had adopted the system which was permitted by the Act of paying tax calculated on the turnover of the previous year of account.
The Income tax Officer accepted this claim, and debited it from the income in the assessment year 1946 47 in assessing the taxable income of the assessees.
31 3 1942 2,679 1 872 807 31 3 1943 3,046 2,863 183 31 3 1944 14,509 18,402 3,893 31 3 1945 47,276 20,037 27,239 31 3 1946 45,315 13,379 31,936 For the assessment year 1946 47 companyresponding to the year of account October 18, 1944 to November 4,1945 , the assessees claimed in their assessment to income tax to deduct Rs.
49,633.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1,537 received as rebate, the total sales tax liability under the provisional assessment was Rs.
4 of 1955.
270 of 1960.
3,894 in adjustment of the liability for the previous year towards sales tax due.
The system of accounting was a mixture of mercantile and cash.
The assessees maintained their books of account according to the Samvat Year ending with Diwali.
47,276 as sales tax provisionally assessed.
J. Umrigar, Thiyagaraja and G. Gopalakrishnan, for the respondents.
49,633 being the amount of sales tax paid under a provisional assessment.
In the year ending 31 3 1945, the assessees had paid Rs.
The Judgment of the Court was delivered by SHAH, J. The assessees are a firm carrying on business at Kurnool, of manufacturing ground nut oil and cake.
March 10.
N. Rajagopal Sastri and D Gupta, for the appellant.
Under the Madras General Sales Tax Act IX of 1939, the assessees were entitled to a rebate of sales tax paid on goods purchased by them and used in the manufacturing process.
