P.C. Ittymathew & Sons vs Dy. Commissioner Of Sales Tax (Law)

The Supreme Court held that in tax matters, the burden lies on the Sales Tax authorities to demonstrate that additional income disclosed by the assessee arises from transactions liable to sales tax, as established in Girdhari Lal Mannelal v. The Sales Tax Commissioner, Madhya Pradesh. The Court found that the High Court erred in reversing the Tribunal's decision, which was based on the lack of evidence from the assessing authority to support its presumption. Consequently, the Supreme Court restored the Tribunal's decision and allowed the civil appeal, setting aside the High Court's order.