Hyderabad: The Hyderabad High Court has held that authorities of the commercial taxes department have the power to inspect premises of all licensed bookmakers of the Hyderabad Race Club, but have no jurisdiction to proceed with assessment proceedings on the allegation of suppressed turnover, under the Hyderabad Horse Racing and betting Tax Regulation of 1358.
A division bench comprising Justice R. Subhash Reddy and Justice B. Siva Sankara Rao was disposing a batch of petitions submitted by M/s Satty and Associates, a licensed bookmaker (bookie), of the Race Club and others seeking to declare the search made by the enforcement wing of the commercial tax department on the residences of the petitioners in the year 2000, as illegal.
They contended that the authorities had no right to raid the premises of the book-makers and seize their account books.
After hearing the arguments and perusing the Tax Regulation of 1358, the bench refuted the contention of the petitioners that power of inspection and search under the regulation is confined only to the Race Course.
The bench said as per Regulation 18(2), it is obligatory for the licensed book-maker to keep accounts in a prescribed manner and he/she has to furnish the books whenever the authorised requires in writing and the officer is empowered to take copies of accounts or any other material from the place other than Race Course area also, when there are allegations of suppression of turnover.
While parting the case, the bench said, “There is a phenomenal increase in race-goers in India in recent times. Though huge revenues of the government towards horse racing and betting in connection therewith are involved, it appears, no serious thought is given to bring about a new legislation covering several aspects, to prevent leakage of revenue of the state.
The bench pointed out “even now, horse racing and betting are governed by Horse Racing and Betting Tax Regulation of 1358, framed by the erstwhile Hyderabad State in 1358 Fasli. It is high time that the state should give a serious thought to cover up the lacunae in the regulations and, if necessary, bring about an appropriate new legislation.”
