The judgment of the court was delivered by

GULATI, J. - This is a reference under section 11(1) of the U.P. Sales Tax Act which has been submitted by the Additional Judge (Revisions) Sales Tax, Agra, inviting the opinion of this court on the following three questions of law :-

"(1) Whether in the circumstances of this case as found in revision the accounts of the dealer for the year 1964-65 could be legally rejected ?

(2) Whether on the facts and circumstances of the case as pointed out in revision the alleged transfer of stock amounting to Rs. 2,85,773 to Jullundur branch of the dealer could be legally regarded as inter-State sale ?

(3) Whether the material found on record supports the fixation of the turnover in the case of U.P. sales at Rs. 12,60,000."

In respect of the assessment year 1964-65 which is the assessment year in dispute, the assessee disclosed a turnover of Rs. 11,10,017 in its returns filed under the U.P. Sales Tax Act. Likewise it disclosed a turnover of Rs. 26,10,990 of inter-State sales in its returns filed under the Central Sales Tax Act. The books of accounts produced by the assessee in support of its returns were rejected and the Sales Tax Officer es