Judgement

SIKRI, J. :- These appeals by special leave are directed against the judgment of the Madras High Court in Tax Cases Nos. 105 and 125 of 1963. The High Court by its common judgment dated August 11, 1964 confirmed the orders of the Sales Tax Appellate Tribunal.

2. A common point of law is involved in both the cases and it will suffice if we give facts in Tax Case No. 105 of 1963 (Civil Appeal No. 633 of l966) in which the respondent was one T. Narayansawami Naidu, hereinafter referred to as the assessee. The assessee is a dealer in cotton and cotton seeds. Before the Additional Commercial Tax Officer, Coimbatore, he claimed to deduct the sum of Rs. 12,32,756.45 as the value of purchases other than the last purchases of cotton. The Commercial Tax Officer exempted Rs. 10,11,534.40 but disallowed the remaining amount on the ground that cotton worth Rs. 2,27,250.00 was in stock on March 81, 1961. He found that subsequent disposal in the next year had not been proved and, therefore, it was liable to be taxed as a last purchase. In holding this he followed the decision of the Kerala High Court in Abdulsalam Rowther v. State of Kerala, 1961-12 STC 98 (Ker). The Appellate Assistant C