10,000, an item of cash credit standing in the name of the wife of one of the partners of the assessee firm, as the profit or income out of companycealed sales ?
The appellate authority rejected this explanation.
1 b If the answer to a above is in the affirmative, was the enhancement of the gross turnover by Rs.
Adopting ten per cent as the rate of profit, the turnover in this regard was determined to be rupees one lakh.
The same view was taken in second appeal by the Board of Revenue.
10,000 represented ten per cent of the profit excessive or arbitrary ?
1,00,000 on the basis that the said Rs.
10,000 as income of the appellant out of companycealed sales.
The assessee firm went up in appeal and again raised the companytention that the amount of rupees ten thousand had been given by Kanji Deosi, partner of the appellant firm, to his wife to obtain her companysent for his second marriage in 1941.
While determining the taxable turnover of the appellant for the period from November 1, 1950, to October 31, 1951, the assessing authority took into account a sum of Rs.
The appellant carries on the business of purchasing and selling companyton and companyton seeds.
The above amount of rupees one lakh was added to the turnover in companyputing the gross turnover of the appellant.
At the instance of the assessee, the two questions reproduced above, along with some other questions, were referred to the High Court.
In doing so the assessing authority rejected the plea of the assessee that rupees ten thousand represented the amount gifted by Kanji Deosi to his wife before marriage in order to obtain her companysent to the second marriage in 1941.
It was stated that the above amount had been lying with her, and had been deposited by her during the year in question with the firm.
The assessing authority treated that sum of Rs.
10,000 in respect of which there was a cash credit entry in the account books of the appellant in the name of the wife of Kanji Deosi, partner of the appellant.
The appellant M s. Girdhari Lal Nannelal of Burhanpur is a partnership firm and is a dealer registered under the Act.
At the time the special leave was granted, the leave was restricted to the answers given by the High Court to questions 1 a and 1 b , which read as under 1 a Whether on the facts and the circumstances of the case, it was legal to treat Rs.
R. Khanna, J. This appeal by special leave is directed against the judgment of the Madhya Pradesh High Court whereby the High Court answered a number of questions referred to it under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958 hereinafter referred to as the Act , in favour of the revenue and against the assessee appellant.
It also carries on business as a companymission agent.
