TMI Blog2015 (5) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover, there is no provision for the assessment of tax recoverable from the book- maker. The Regulations provide that all the monies which a licensed book-maker is liable to make over to the prescribed officer under Section 17, shall be recovered from the licensed book-maker as public demand. But, such recovery can be made only for the demand of tax payable by the petitioner. But, in the absence of any provision for assessment and determination of tax payable by the petitioner-book-maker, respondent does not have any authority or jurisdiction to initiate proceedings for recovery of tax from the petitioner. As the levy pertains to betting tax, unless there is specific and definite jurisdiction conferred on the respondent, it is not open to initiate such proceedings and make an assessment by issuing show-cause notice. The officer authorised by the Government is empowered to inspect and take copies of such accounts or any other material from the place other than Race Course area also, when there are allegations of suppression of turnover or illegal retention of collected tax monies. - Decided against appellant. - Writ Petition Nos.17650, 17666, 17668 and 18431 of 2001 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egulation 16 is the charging section for the betting tax at 12.5% out of the monies paid or agreed to be paid by a backer to a licensed book-maker in respect of a bet. As per Regulation 18(2), all licensed book-makers shall keep accounts in such manner as may be prescribed, and when required in writing by any officer empowered by the Government, permit such officer or an officer authorised in writing by him in this behalf, to inspect and take copies of such account. Regulation 20 empowers to make Rules. Accordingly, Hyderabad Horse Racing and Betting Tax Rules, 1949 (for short the Rules) are framed. 5. Petitioner, one of the licensed book-makers at Hyderabad Racing Club, has filed monthly statements of tax due, during the years 1994-95 to 2000-01, along with tax demands thereon, with the Race Club and in turn they have filed consolidated statements of all book-makers before the Commercial Tax Officer, Malakpet Circle, Hyderabad. 6. The house of one of the partners of the petitioner-firm by name Sri S. Ram Kumar Reddy was searched on 07.08.2000 and it is stated that certain registers, records, bank passbooks and loose slips relating to the business, were recovered. Based on su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counter-affidavit, it is further stated that whenever amount is collected as a bet, 12.5% of such amount shall be deemed to have been collected as betting tax on behalf of the Government; in the present case, petitioner had collected the tax and suppressed the amounts as betting tax and is holding the same on behalf of the Government; inasmuch as such tax has not been remitted to the Government, petitioner is now called upon to show cause why the betting tax should not be quantified and collected from him. It is further stated that, in the circumstances, inspection of the accounts of the petitioner at his residence and the subsequent notice to remit the rightful dues of the Government would not be illegal and without jurisdiction. Stating thus, respondent prayed for dismissal of the Writ Petition. 9. Heard Sri S.R. Ashok, learned senior counsel assisted by Sri A. Ravinder Reddy, for the petitioner and the Special Government Pleader for Commercial Taxes (Telangana) for the respondent and perused the material on record. 10. It is contended by the learned counsel for the petitioner, that under the scheme of the Regulations and the Rules framed thereunder, respondent-authority is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be recovered from the licensed book-maker as public demand. Further, under Rule 31 of the Rules, within a week from the last day of each month in which a race meeting or race meetings are held, every licensed book-maker carrying on business at the race meeting shall forward to the Betting Tax Officer, through the manager of a race meeting or other authorised officer of the race meeting in Form E, setting forth the total amount of the monies paid or agreed to be paid by him in satisfaction of winning bets; and make over to the Betting Officer the amount of the tax due to the Government on such monies at the rate specified by the Government in Sections 13 and 16(1) of the Act. Under the Scheme of the Regulations and the Rules made thereunder, if any amounts are withheld by the licensed book-maker, or in the event of suppression of turnover, there is no provision for the assessment of tax recoverable from the book- maker. The Regulations provide that all the monies which a licensed book-maker is liable to make over to the prescribed officer under Section 17, shall be recovered from the licensed book-maker as public demand. But, such recovery can be made only for the demand of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... convincing and acceptable. Under Regulation 9, any officer authorised by Government for the purpose may enter any race course while a race meeting is in progress, whether the provisions of this Chapter or of any rules made thereunder are being complied with. As per Regulation 18(2), it is obligatory on the part of the licensed book-maker to keep accounts in such a manner as may be prescribed and shall, when required in writing by an officer empowered in this behalf by the Government, permit such officer, or an officer authorised in writing by him in this behalf, to inspect and take copies of such account. In view of the said Regulation, the officer authorised by the Government is empowered to inspect and take copies of such accounts or any other material from the place other than Race Course area also, when there are allegations of suppression of turnover or illegal retention of collected tax monies. 15. For the aforesaid reasons, while holding that there is power of inspection to the respondent-authority to inspect the premises of all the licensed book-makers, we are of the view that the respondent-authority is not having any authority or jurisdiction to proceed with the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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