1961 (12) TMI 68

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..... the assessing authority was over Rs. 27,00,000, The dealer claimed that the turnover of Rs. 3,80,918 representing sales of bullion, being other than first sales, was exempt from tax. The Deputy Commercial Tax Officer rejected the claim on the ground that the dealer has not maintained a separate account of the gold and silver sold from out of the stocks obtained from dealers or licensees. This offi .....

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..... ble as second sales were necessary to be maintained. These contentions however failed to gain acceptance. The Appellate Assistant Commissioner took the view that the purchase of bullion from other dealers came to about one-seventh of his total purchases of bullion. On this basis, he thought that one-seventh of the sales of bullion would have been drawn from the stocks covered by purchases from oth .....

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..... is a case where a dealer purchases bullion both from other dealers and persons other than dealers. When he effects sales of bullion as such, the bullion may come out of the first or the second category mentioned above. If it comes out of the first category, his sale would obviously be a second sale which would not be liable to tax. It is true that the assessee has not maintained a separate accoun .....

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..... n which he purchases from other dealers, this latter quantity can be regarded as the subject-matter of a second sale. Apart from the difficulty of identifying one piece of gold from another as covered by a purchase from a dealer and from a non-dealer, the insistence upon the maintenance of any such account will only lead to fabrication of spurious accounts. It is not as if the goods sold under the .....

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..... h takes him out of the taxable category rather than otherwise. We are of the opinion that the officers and the Tribunal below have set an artificial and unnatural standard in the facts and circumstances of the case. We are of opinion that the turnover in question can under the law be deemed to relate to the quantity of gold which the assessee had purchased from other dealers and was consequently .....

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