Judgment

KHANNA, J.:- This appeal by special leave is directed against the judgment of Madhya Pradesh High Court whereby the High Court answered a number of questions referred to it under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958 (hereinafter referred to as the Act) in favour of the revenue and against the assessee-appellant. At the time the special leave was granted, the leave was restricted to the answers given by the High Court to questions (1) (a) (1) (b), which read as under:

"(1) (a). Whether on the facts and the circumstances of the case, it was legal to treat Rs. 10,000/- an item of cash credit standing in the name of the wife of one of the partners of the assessee firm, as the profit or income out of concealed sales?

(1) (b). If the answer to (a) above is in the affirmative was the enhancement of the gross turnover of Rs. 1,00,000/- on the basis that the said Rs. 10,000/- represented ten per cent of the profit excessive or arbitrary?"

2. The appellant M/s. Girdhari Lal Manne Lal of Burhanpur is a partnership firm and is a dealer registered under the State Sales Tax Law. The appellant carries on the business of purchasing and selling cotton and cotton seeds.