SATISH CHANDRA, J. - (1.) THIS writ petition is directed against an order dated 5th March, 1974, by which the revising authority dismissed an application for rectification filed under section 22 of the U.P. Sales Tax Act.
(2.) THE applicant is a dealer, inter alia, in deshi ghee and cream. In the assessment year 1964-65 the turnover of cream was not liable to tax. Purchase tax was levied on the turnover of ghee with effect from 1st December, 1964. The assessee in his return disclosed turnovers of purchase of ghee as well as cream. The assessing authority found several discrepancies in the account books and the return and ultimately rejected the account books. The appeal filed by the assessee also failed. The assessee then went up in revision. The revising authority accepted the plea of the assessee that he had in fact purchased cream worth Rs. 9 lacs and odd on behalf of the principals for making ghee. In relation to the turnover of ghee the revising authority found that there was a difference of Rs. 1,80,000 in the returned turnover and that disclosed from the account books of the assessee, and so the version of the account books could not be accepted, but the enhancement in this respect was upheld only to the extent of Rs. 2 lacs.
(3.) THE assessee made an application for reference. At this stage the revising authority went into the account books, and found that the assessee had been able to reconcile the difference between the return and the account books, and that it appeared that the enhanced turnover mentioned in the return represented the turnover of cream and not of ghee. On this view that revising authority referred the following question of law for the opinion of the High Court : "Whether, on account of mere difference in the taxable turnover of ghee disclosed in the returns and finally shown at the time of the assessment, the turnover of ghee disclosed could be rejected and enhanced to Rs. 5,40,000 ?" ;